Question 1

The computer file used for recording payroll transactions for each employee and maintaining total wages paid for the year to date is the

Accepted Answer

A)  payroll transaction file. 
B)  payroll master file. 
C)  payroll bank account reconciliation. 
D)  payroll tax returns. 
A)  payroll transaction file. 
B)  payroll master file. 
C)  payroll bank account reconciliation. 
D)  payroll tax returns.

Question 2

The nature, extent, and timing of substantive tests of payroll transactions vary depending, in part, on assessed control risk.

Accepted Answer

A) True 
 B)False

Question 3

An impress payroll account is a separate payroll bank account in which a large cash balance is maintained.

Accepted Answer

A) True 
 B)False

Question 4

Separation of duties in the payroll and personnel cycle will prevent overpayments, but not payments to nonexistent employees.

Accepted Answer

A) True 
 B)False

Question 5

Records that include data about employees such as employment date, performance ratings and pay rates are the

Accepted Answer

A)  human resource records. 
B)  employee screening forms. 
C)  summary payroll reports. 
D)  employee folders. 
A)  human resource records. 
B)  employee screening forms. 
C)  summary payroll reports. 
D)  employee folders.

Question 6

What key separation of duties should the auditor expect to find within the payroll and personnel cycle?

Accepted Answer

The human resources department should be

Question 7

The total of the individual employee earnings in the payroll master file should equal the total

Accepted Answer

A)  balance of gross payroll in general ledger accounts. 
B)  of the checks drawn to employees for payroll. 
C)  gross payroll plus the total contributed by the employer for payroll taxes. 
D)  gross pay for the current week's payroll. 
A)  balance of gross payroll in general ledger accounts. 
B)  of the checks drawn to employees for payroll. 
C)  gross payroll plus the total contributed by the employer for payroll taxes. 
D)  gross pay for the current week's payroll.

Question 8

When examining payroll transactions, an auditor is primarily concerned with the possibility of

Accepted Answer

A)  incorrect summaries of employee time records. 
B)  overpayments and unauthorized payments. 
C)  under withholding of amounts required to be withheld. 
D)  posting of gross payroll amounts to incorrect salary expense accounts. 
A)  incorrect summaries of employee time records. 
B)  overpayments and unauthorized payments. 
C)  under withholding of amounts required to be withheld. 
D)  posting of gross payroll amounts to incorrect salary expense accounts.

Question 9

Which of the following includes all payroll transactions processed by the accounting system for a given period of time?

Accepted Answer

A)  payroll journal 
B)  payroll transaction file 
C)  time report 
D)  payroll summary 
A)  payroll journal 
B)  payroll transaction file 
C)  time report 
D)  payroll summary

Question 10

Which of the following is a major balance-related audit objective in testing payroll liabilities?

Accepted Answer

A)  Payroll tax expense is properly recorded. 
B)  Transactions in the payroll and personnel cycle are recorded in the proper period. 
C)  Accrual of salaries is the same as the amounts paid on the payroll tax returns. 
D)  Time records are recorded by supervisors. 
A)  Payroll tax expense is properly recorded. 
B)  Transactions in the payroll and personnel cycle are recorded in the proper period. 
C)  Accrual of salaries is the same as the amounts paid on the payroll tax returns. 
D)  Time records are recorded by supervisors.

The computer file used for recording payroll transactions for each employee and maintaining total wages paid for the year to date is the

The nature, extent, and timing of substantive tests of payroll transactions vary depending, in part, on assessed control risk.

An impress payroll account is a separate payroll bank account in which a large cash balance is maintained.

Separation of duties in the payroll and personnel cycle will prevent overpayments, but not payments to nonexistent employees.

Records that include data about employees such as employment date, performance ratings and pay rates are the

What key separation of duties should the auditor expect to find within the payroll and personnel cycle?

The total of the individual employee earnings in the payroll master file should equal the total

When examining payroll transactions, an auditor is primarily concerned with the possibility of

Which of the following includes all payroll transactions processed by the accounting system for a given period of time?

Which of the following is a major balance-related audit objective in testing payroll liabilities?

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 Materiality

Assessing the Risk of Material Misstatement

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, Substantive Tests of Transactions, and Accounts Payable

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts

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

The computer file used for recording payroll transactions for each employee and maintaining total wages paid for the year to date is the

The nature, extent, and timing of substantive tests of payroll transactions vary depending, in part, on assessed control risk.

An impress payroll account is a separate payroll bank account in which a large cash balance is maintained.

Separation of duties in the payroll and personnel cycle will prevent overpayments, but not payments to nonexistent employees.

Records that include data about employees such as employment date, performance ratings and pay rates are the

What key separation of duties should the auditor expect to find within the payroll and personnel cycle?

The total of the individual employee earnings in the payroll master file should equal the total

When examining payroll transactions, an auditor is primarily concerned with the possibility of

Which of the following includes all payroll transactions processed by the accounting system for a given period of time?

Which of the following is a major balance-related audit objective in testing payroll liabilities?

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 Materiality

Assessing the Risk of Material Misstatement

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, Substantive Tests of Transactions, and Accounts Payable

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts

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