Question 1

Since the amount of expense report reimbursements is insignificant,auditors can ignore expense reports for officers and directors.

Accepted Answer

A) True 
 B)False

Question 2

An imprest payroll account that has a significant balance may indicate the presence of

Accepted Answer

A) employees have not yet cashed their payroll checks. 
B) fraudulent transfer of funds by the company. 
C) lack of controls over payroll distribution. 
D) the company is overpaying its employees. 
A) employees have not yet cashed their payroll checks. 
B) fraudulent transfer of funds by the company. 
C) lack of controls over payroll distribution. 
D) the company is overpaying its employees.

Question 3

Auditors seldom expect to find misstatements when testing payroll transactions.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following audit procedures would be the most effective in testing for nonexistent employees?

Accepted Answer

A) Trace transactions recorded in the payroll journal to the human resources department to determine employment status. 
B) Examine cancelled checks for proper endorsement. 
C) Recalculate net pay. 
D) Reconcile the disbursements in the payroll journal with the disbursements on the payroll bank statement. 
A) Trace transactions recorded in the payroll journal to the human resources department to determine employment status. 
B) Examine cancelled checks for proper endorsement. 
C) Recalculate net pay. 
D) Reconcile the disbursements in the payroll journal with the disbursements on the payroll bank statement.

Question 5

Discuss each of the following documents and records used in the timekeeping and payroll preparation function in the payroll and personnel cycle: time record,job time ticket,payroll transaction file,payroll journal and payroll master file.

Accepted Answer

The primary documents and records used i

Question 6

The payroll and personnel cycle ends with which of the following events?

Accepted Answer

A) interviewing job candidates 
B) hiring a new employee 
C) existing employees submitting requests for payment for work performed 
D) issuance of paychecks 
A) interviewing job candidates 
B) hiring a new employee 
C) existing employees submitting requests for payment for work performed 
D) issuance of paychecks

Question 7

Discuss the procedures involved in,and the purpose of a surprise payroll payoff.

Accepted Answer

A surprise payroll payoff is a procedure

Question 8

Which of the following types of audit tests is usually emphasized due to a lack of independent third-party evidence related to payroll transactions?

Accepted Answer

A) analytical procedures 
B) tests of details of balances 
C) tests of controls 
D) Each of the above is emphasized. 
A) analytical procedures 
B) tests of details of balances 
C) tests of controls 
D) Each of the above is emphasized.

Question 9

There are several key internal controls over the payment of payroll function that should be present.For example,the payroll should be distributed by someone who is not involved in the other payroll functions.Discuss other key internal controls over the payment of payroll function as it relates to the physical control over assets and records.

Accepted Answer

•If employees are paid through direct de

Question 10

Generally,is the inherent risk level for the audit of the payroll and personnel set at low,moderate,or high?
 Explain.

Accepted Answer

Generally inherent risk is set low since

Question 11

There is inherent risk of payroll fraud because most transactions involve

Accepted Answer

A) expense accounts. 
B) accrued liabilities. 
C) estimates. 
D) cash. 
A) expense accounts. 
B) accrued liabilities. 
C) estimates. 
D) cash.

Question 12

Which of the following is an accurate statement regarding nonexistent employees?

Accepted Answer

A) In order to prevent this type of fraud,the foreman should distribute the paychecks and approve the time cards. 
B) Records for all terminated employees should be destroyed to prevent this type of fraud. 
C) The person committing this type of fraud is generally the CEO or CFO of the company. 
D) This type of fraud often results from the continuance of an employee on the payroll after the employee has been terminated. 
A) In order to prevent this type of fraud,the foreman should distribute the paychecks and approve the time cards. 
B) Records for all terminated employees should be destroyed to prevent this type of fraud. 
C) The person committing this type of fraud is generally the CEO or CFO of the company. 
D) This type of fraud often results from the continuance of an employee on the payroll after the employee has been terminated.

Question 13

Which of the following best describes effective internal control over payroll?

Accepted Answer

A) The preparation of the payroll must be under the control of the personnel department. 
B) The confidentiality of employee payroll data should be carefully protected to prevent fraud. 
C) The duties of hiring,payroll computation,and payment to employees should be segregated. 
D) The payment of cash to employees should be replaced with payment by checks. 
A) The preparation of the payroll must be under the control of the personnel department. 
B) The confidentiality of employee payroll data should be carefully protected to prevent fraud. 
C) The duties of hiring,payroll computation,and payment to employees should be segregated. 
D) The payment of cash to employees should be replaced with payment by checks.

Since the amount of expense report reimbursements is insignificant,auditors can ignore expense reports for officers and directors.

An imprest payroll account that has a significant balance may indicate the presence of

Auditors seldom expect to find misstatements when testing payroll transactions.

Which of the following audit procedures would be the most effective in testing for nonexistent employees?

Discuss each of the following documents and records used in the timekeeping and payroll preparation function in the payroll and personnel cycle: time record,job time ticket,payroll transaction file,payroll journal and payroll master file.

The payroll and personnel cycle ends with which of the following events?

Discuss the procedures involved in,and the purpose of a surprise payroll payoff.

Which of the following types of audit tests is usually emphasized due to a lack of independent third-party evidence related to payroll transactions?

Generally,is the inherent risk level for the audit of the payroll and personnel set at low,moderate,or high? Explain.

There is inherent risk of payroll fraud because most transactions involve

Which of the following is an accurate statement regarding nonexistent employees?

Which of the following best describes effective internal control over payroll?

The Demand for Audit and Other Assurance Services

The Cpa Profession

Audit Reports

Professional Ethics

Legal Liability

Audit Responsibilities and Objectives

Audit Evidence

Audit Planning and Analytical Procedures

Materiality and Risk

Fraud Auditing

Internal Control and Coso Framework

Assessing Control Risk and Reporting on Internal Controls

Overall Audit Strategy and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling for Tests of Details of Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls,

Completing the Tests in the Acquisition and Payment Cycle:

Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash and Financial Instruments

Completing the Audit

Other Assurance Services

Internal and Governmental Financial Auditing and Operational Auditing

Filters

Exam 20: Audit of the Payroll and Personnel Cycle

Since the amount of expense report reimbursements is insignificant,auditors can ignore expense reports for officers and directors.

An imprest payroll account that has a significant balance may indicate the presence of

Auditors seldom expect to find misstatements when testing payroll transactions.

Which of the following audit procedures would be the most effective in testing for nonexistent employees?

Discuss each of the following documents and records used in the timekeeping and payroll preparation function in the payroll and personnel cycle: time record,job time ticket,payroll transaction file,payroll journal and payroll master file.

The payroll and personnel cycle ends with which of the following events?

Discuss the procedures involved in,and the purpose of a surprise payroll payoff.

Which of the following types of audit tests is usually emphasized due to a lack of independent third-party evidence related to payroll transactions?

Generally,is the inherent risk level for the audit of the payroll and personnel set at low,moderate,or high? Explain.

There is inherent risk of payroll fraud because most transactions involve

Which of the following is an accurate statement regarding nonexistent employees?

Which of the following best describes effective internal control over payroll?

The Demand for Audit and Other Assurance Services

The Cpa Profession

Audit Reports

Professional Ethics

Legal Liability

Audit Responsibilities and Objectives

Audit Evidence

Audit Planning and Analytical Procedures

Materiality and Risk

Fraud Auditing

Internal Control and Coso Framework

Assessing Control Risk and Reporting on Internal Controls

Overall Audit Strategy and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling for Tests of Details of Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls,

Completing the Tests in the Acquisition and Payment Cycle:

Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash and Financial Instruments

Completing the Audit

Other Assurance Services

Internal and Governmental Financial Auditing and Operational Auditing

Filters