Question 1

What is the best control to reduce the risk of losing payroll data?

Accepted Answer

A) Passwords. 
B) Physical security controls. 
C) Backup and disaster recovery procedures. 
D) Supervisory review. 
A) Passwords. 
B) Physical security controls. 
C) Backup and disaster recovery procedures. 
D) Supervisory review.

Question 2

A report of employer's quarterly federal tax return (showing all wages subject to tax and amounts withheld for income tax and FICA)is called

Accepted Answer

A) form W-2. 
B) form W-3. 
C) form 1099-Misc. 
D) form 941. 
A) form W-2. 
B) form W-3. 
C) form 1099-Misc. 
D) form 941.

Question 3

Why are accurate cumulative earnings records important?

Accepted Answer

Accurate records of cumulative earnings

Question 4

Describe the basic activities in an HRM/payroll cycle.

Accepted Answer

The HRM/payroll cycle is a recurring set

Question 5

Payroll deductions fall into the broad categories of ________ and ________.

Accepted Answer

A) payroll tax withholdings; voluntary deductions 
B) unemployment; social security taxes 
C) unemployment taxes; income taxes 
D) voluntary deductions; income taxes 
A) payroll tax withholdings; voluntary deductions 
B) unemployment; social security taxes 
C) unemployment taxes; income taxes 
D) voluntary deductions; income taxes

Question 6

Which organization provides payroll processing as well as other HRM services,like employee benefit design and administration?

Accepted Answer

A) title companies 
B) payroll service bureau 
C) professional employer organization 
D) paycheck distribution companies 
A) title companies 
B) payroll service bureau 
C) professional employer organization 
D) paycheck distribution companies

Question 7

Falk Noam is the internal auditor for Matan Incorporated.Before investigating the HRM / payroll cycle at Matan,Falk decided to read up on the proper segregation of duties regarding payroll disbursement processes.For strongest segregation of duties,the ________ should record payroll.

Accepted Answer

A) accounts payable department 
B) cashier 
C) internal audit department 
D) external auditor 
A) accounts payable department 
B) cashier 
C) internal audit department 
D) external auditor

Question 8

Which activity below is not performed by Human Resources management (HRM)?

Accepted Answer

A) Product design. 
B) Training. 
C) Job assignment. 
D) Recruitment and hiring. 
A) Product design. 
B) Training. 
C) Job assignment. 
D) Recruitment and hiring.

Question 9

Which of the following statements is false regarding the use of incentives,commissions and bonuses in the payroll system?

Accepted Answer

A) Using incentives, commissions, and bonuses requires linking the payroll system and the information systems of sales and other cycles in order to collect the data used to calculate bonuses. 
B) Bonus/incentive schemes must be properly designed with realistic, attainable goals that can be objectively measured. 
C) Incentive schemes can result in undesirable behavior. 
D) Incentive schemes can create fraud. 
A) Using incentives, commissions, and bonuses requires linking the payroll system and the information systems of sales and other cycles in order to collect the data used to calculate bonuses. 
B) Bonus/incentive schemes must be properly designed with realistic, attainable goals that can be objectively measured. 
C) Incentive schemes can result in undesirable behavior. 
D) Incentive schemes can create fraud.

Question 10

Accountants can help executive compensation plan boards

Accepted Answer

A) comply with legal and regulatory requirements. 
B) by identifying the best ways to keep the details of compensation plans out of the hands of external parties. 
C) avoid paying excessive amounts of "perks" to executives. 
D) distribute information regarding how well each executive is performing their job. 
A) comply with legal and regulatory requirements. 
B) by identifying the best ways to keep the details of compensation plans out of the hands of external parties. 
C) avoid paying excessive amounts of "perks" to executives. 
D) distribute information regarding how well each executive is performing their job.

Question 11

What controls are available to address the threat of payroll errors?

Accepted Answer

Three types of controls can be used to c

Question 12

The purpose of a general ledger payroll clearing account is

Accepted Answer

A) to check the accuracy and completeness of payroll recording and its allocation to cost centers. 
B) to make the bank reconciliation easier. 
C) to make sure that all employees are paid correctly each week. 
D) to prevent the cashier from having complete control of the payroll cycle. 
A) to check the accuracy and completeness of payroll recording and its allocation to cost centers. 
B) to make the bank reconciliation easier. 
C) to make sure that all employees are paid correctly each week. 
D) to prevent the cashier from having complete control of the payroll cycle.

Question 13

Which type of payroll report lists the voluntary deductions for each employee?

Accepted Answer

A) Payroll register. 
B) Deduction register. 
C) Employee earnings statement. 
D) Federal W-4 form. 
A) Payroll register. 
B) Deduction register. 
C) Employee earnings statement. 
D) Federal W-4 form.

Question 14

The most vital control in preventing unauthorized changes to the payroll master file is

Accepted Answer

A) segregation of duties between the preparation of paychecks and their review. 
B) segregation of duties between the preparation of paychecks and their distribution. 
C) segregation of duties between the authorization of changes and the physical handling of paychecks. 
D) having the controller closely review and then approve any changes to the master file. 
A) segregation of duties between the preparation of paychecks and their review. 
B) segregation of duties between the preparation of paychecks and their distribution. 
C) segregation of duties between the authorization of changes and the physical handling of paychecks. 
D) having the controller closely review and then approve any changes to the master file.

Question 15

Pay rate information should be stored in

Accepted Answer

A) employees' personnel files. 
B) employee subsidiary ledgers. 
C) the payroll master file. 
D) electronic time cards. 
A) employees' personnel files. 
B) employee subsidiary ledgers. 
C) the payroll master file. 
D) electronic time cards.

Question 16

Which of the following is a control that addresses the threat of unauthorized changes to the payroll master file?

Accepted Answer

A) Restriction of access to the EFT system. 
B) Biometric authentication. 
C) Segregation of duties. 
D) Sound hiring procedures. 
A) Restriction of access to the EFT system. 
B) Biometric authentication. 
C) Segregation of duties. 
D) Sound hiring procedures.

Question 17

Which of the following controls can minimize the threat of hiring unqualified or larcenous employees?

Accepted Answer

A) Redepositing unclaimed paychecks and investigating cause. 
B) Issuing earnings statements to employees. 
C) Using biometric authentication. 
D) Conducting criminal background investigation checks of all applicants for finance related positions. 
A) Redepositing unclaimed paychecks and investigating cause. 
B) Issuing earnings statements to employees. 
C) Using biometric authentication. 
D) Conducting criminal background investigation checks of all applicants for finance related positions.

Question 18

A payroll clearing account is used to

Accepted Answer

A) check the accuracy of payroll costs. 
B) speed up payroll transaction processing. 
C) reduce the transaction costs associated with payroll transaction processing. 
D) eliminate the need to manually record payroll transactions. 
A) check the accuracy of payroll costs. 
B) speed up payroll transaction processing. 
C) reduce the transaction costs associated with payroll transaction processing. 
D) eliminate the need to manually record payroll transactions.

Question 19

Knowledge management systems (KMS)permit organizations to

Accepted Answer

A) store employee solutions to specific problems in a shared database. 
B) learn from individuals external to the organization. 
C) perform background checks on potential employees. 
D) gain competitive business intelligence on competitors. 
A) store employee solutions to specific problems in a shared database. 
B) learn from individuals external to the organization. 
C) perform background checks on potential employees. 
D) gain competitive business intelligence on competitors.

Question 20

Form 941

Accepted Answer

A) is filed each quarter to reconcile monthly tax payments with total tax liability for the quarter. 
B) is used in preparing labor-related reports for government agencies. 
C) is used for employee information and annual payroll reports. 
D) is used to document compliance with applicable regulations. 
A) is filed each quarter to reconcile monthly tax payments with total tax liability for the quarter. 
B) is used in preparing labor-related reports for government agencies. 
C) is used for employee information and annual payroll reports. 
D) is used to document compliance with applicable regulations.

Exam 15: The Human Resources Management and Payroll Cycle

What is the best control to reduce the risk of losing payroll data?

A report of employer's quarterly federal tax return (showing all wages subject to tax and amounts withheld for income tax and FICA)is called

Why are accurate cumulative earnings records important?

Describe the basic activities in an HRM/payroll cycle.

Payroll deductions fall into the broad categories of ________ and ________.

Which organization provides payroll processing as well as other HRM services,like employee benefit design and administration?

Falk Noam is the internal auditor for Matan Incorporated.Before investigating the HRM / payroll cycle at Matan,Falk decided to read up on the proper segregation of duties regarding payroll disbursement processes.For strongest segregation of duties,the ________ should record payroll.

Which activity below is not performed by Human Resources management (HRM)?

Which of the following statements is false regarding the use of incentives,commissions and bonuses in the payroll system?

Accountants can help executive compensation plan boards

What controls are available to address the threat of payroll errors?

The purpose of a general ledger payroll clearing account is

Which type of payroll report lists the voluntary deductions for each employee?

The most vital control in preventing unauthorized changes to the payroll master file is

Pay rate information should be stored in

Which of the following is a control that addresses the threat of unauthorized changes to the payroll master file?

Which of the following controls can minimize the threat of hiring unqualified or larcenous employees?

A payroll clearing account is used to

Knowledge management systems (KMS)permit organizations to

Form 941

Conceptual Foundations of Accounting Information Systems

Overview of Transaction Processing and Enterprise Resource Planning Systems

Systems Documentation Techniques

Relational Databases

Computer Fraud

Computer Fraud and Abuse Techniques

Control and Accounting Information Systems

Controls for Information Security

Confidentiality and Privacy Controls

Processing Integrity and Availability Controls

Auditing Computer-Based Information Systems

The Revenue Cycle: Sales to Cash Collections

The Expenditure Cycle: Purchasing to Cash Disbursements

The Production Cycle

General Ledger and Reporting System

Database Design Using the Rea Data Model

Implementing an Rea Model in a Relational Database

Special Topics in Rea Modeling

Introduction to Systems Development and Systems Analysis

Ais Development Strategies

Systems Design, implementation, and Operation

Filters

Payroll deductions fall into the broad categories of and .