EBK AUDITING & ASSURANCE SERVICES: A SY
11th Edition
ISBN: 9781260687668
Author: Jr
Publisher: MCGRAW-HILL LEARNING SOLN.(CC)
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Question
Chapter 12, Problem 12.17MCQ
To determine
Concept Introduction:
Payroll expenses take major part of the company’s earnings and hence these are one the major expenses for an organization. There are chances of misstatements in payroll accounting due to high human involvement. The auditor plans separately for the audit of payroll transactions.
To choose: The correct authority for processing payroll transactions.
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Students have asked these similar questions
The purpose of separating the duties of hiring personnel and distributing payroll checks is toseparate thea. Authorization of transactions from the custody of related assets.b. Operational responsibility from the record-keeping responsibility.c. Human resources function from the controllership function.d. Administrative controls from the internal accounting controls.
Account balances for payroll and personnel accounts are designed and tested.
Design and perform tests ofdetails of balances for accounts inthe payroll and personnel cycle.
Chapter 12 Solutions
EBK AUDITING & ASSURANCE SERVICES: A SY
Ch. 12 - Prob. 12.1RQCh. 12 - Prob. 12.2RQCh. 12 - Prob. 12.3RQCh. 12 - Prob. 12.4RQCh. 12 - Prob. 12.5RQCh. 12 - Prob. 12.6RQCh. 12 - Prob. 12.7RQCh. 12 - Prob. 12.8RQCh. 12 - Prob. 12.9RQCh. 12 - Prob. 12.10RQ
Ch. 12 - Prob. 12.11RQCh. 12 - Prob. 12.12RQCh. 12 - Prob. 12.13RQCh. 12 - Prob. 12.14MCQCh. 12 - Prob. 12.15MCQCh. 12 - Prob. 12.16MCQCh. 12 - Prob. 12.17MCQCh. 12 - Prob. 12.18MCQCh. 12 - Prob. 12.19MCQCh. 12 - Prob. 12.20MCQCh. 12 - Prob. 12.21MCQCh. 12 - Prob. 12.22MCQCh. 12 - Prob. 12.23MCQCh. 12 - Prob. 12.24PCh. 12 - Prob. 12.26PCh. 12 - Prob. 12.27P
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- Match the four functions of payroll activities with their related internal controls: a. An independent employee should sign and distribute the prenumbered checks. select a function Hiring EmployeesPaying the PayrollPreparing the PayrollTimekeeping b. Supervisors should monitor hours worked through time reports. select a function Hiring EmployeesPaying the PayrollPreparing the PayrollTimekeeping c. Human Resources department should authorize employment. select a function Hiring EmployeesPaying the PayrollPreparing the PayrollTimekeeping d. Two or more employees should verify payroll amounts. select a functionarrow_forwardWhich control activity is the entity implementing when the system verifies that all payroll payments have a valid employee identification number as entered by the HR department Select one: O a. Adequate separation of duties b. Physical control over assets and records Oc. Proper authorization of transactions and activities O d. Adequate documents and recordsarrow_forwardWhich function should distribute paychecks?a. personnelb. timekeepingc. paymasterd. payrollarrow_forward
- Describe a walkthrough of the payroll transaction flow from hiring authorization to payroll checkdisbursement. (a) What document copies would be collected? (b) What controls should be noted?arrow_forwardwhat are the examples of independent verification controls in a payroll accounting systemarrow_forwardThe following are typical questions that might appear on an internal control questionnaire for payroll activities: 1. Is there adequate separation of duties between employees who maintain human resources records and employees who approve payroll disbursements? 2. Is there adequate separation of duties between personnel who maintain timekeeping or attendance records for employees and employees who distribute payroll checks? Describe the purpose of each of the above controlsarrow_forward
- Describe the uses of payroll register in business.arrow_forwardWhat are the payroll system's general tasks?arrow_forwardThe following are typical questions that might appear on an internal control questionnaire for payroll activities: 1. Is there adequate separation of duties between employees who maintain human resources records and employees who approve payroll disbursements? 2. Is there adequate separation of duties between personnel who maintain timekeeping or attendance records for employees and employees who distribute payroll checks? Describe the manner in which each of the above controls might be tested.arrow_forward
- Which General Staff member negotiates and monitors contracts, maintains documentation for reimbursement, and oversees timekeeping for incident personnel? A.Finance/Administration Section Chief B. Operations Section Chief C. Logistics Section Chief D. Planning Section Chief.arrow_forwardWhat functions can be performed by an automated payroll system?arrow_forwardDefine the term payroll register.arrow_forward
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