Question 1

Work-in-process records are updated by payroll personnel.

Accepted Answer

A) True 
 B)False

Question 2

Three major tasks are handled by the fixed asset system.What is the purpose of each? What special control issues affect each?

Accepted Answer

Asset acquisition handles the steps lead

Question 3

The personnel action form provides authorization control by

Accepted Answer

A) preventing paychecks for terminated employees 
B) verifying pay rates for employees 
C) informing payroll of new hires 
D) all of the above 
A) preventing paychecks for terminated employees 
B) verifying pay rates for employees 
C) informing payroll of new hires 
D) all of the above

Question 4

Describe an internal control that would prevent an employee from stealing a computer and then reporting it as scrapped.

Accepted Answer

Supervisors must authorize the

Question 5

Outline the key steps taken in a basic technology payroll system when preparing the weekly payroll for a manufacturing firm.

Accepted Answer

Personnel action and time and attendance

Question 6

Which department authorizes changes to employee pay rates?

Accepted Answer

The personnel depart

Question 7

The fixed asset system performs all of the following except

Accepted Answer

A) determines the need for new assets 
B) maintains depreciation records 
C) records retirement and disposal of assets 
D) tracks the physical location of fixed assets 
A) determines the need for new assets 
B) maintains depreciation records 
C) records retirement and disposal of assets 
D) tracks the physical location of fixed assets

Question 8

Explain the integration of payroll with the human resource management (HRM)system that often happens in moderate- and large-sized organizations.

Accepted Answer

The HRM system captures and processes a

Question 9

Inventory control performs the formal record keeping function for fixed assets.

Accepted Answer

A) True 
 B)False

Question 10

Discuss the fundamental risk and control issues associated with fixed assets that are different from raw materials and finished goods.

Accepted Answer

Authorization Controls.Because fixed ass

Question 11

The fixed asset disposal report authorizes the user department to dispose of a fixed asset.

Accepted Answer

A) True 
 B)False

Question 12

Employee paychecks should be drawn against a special checking account.

Accepted Answer

A) True 
 B)False

Question 13

Time cards capture the total time an individual worker spends on each production job.

Accepted Answer

A) True 
 B)False

Question 14

Describe an internal control that would prevent the acquisition of office equipment which is not needed by the firm.

Accepted Answer

A higher organizational level

Question 15

Asset maintenance involves only the recording of depreciation charges.Physical improvements are always expensed.

Accepted Answer

A) True 
 B)False

Question 16

Which control is not a part of the fixed asset system?

Accepted Answer

A) formal analysis of the purchase request 
B) review of the assumptions used in the capital budgeting model 
C) development of an economic order quantity model 
D) estimates of anticipated cost savings 
A) formal analysis of the purchase request 
B) review of the assumptions used in the capital budgeting model 
C) development of an economic order quantity model 
D) estimates of anticipated cost savings

Question 17

Which of the following statements is not true?

Accepted Answer

A) Routine payroll processing begins with the submission of time cards. 
B) Payroll clerks must verify the hours reported on the time cards. 
C) Payroll reconciles personnel action forms with time cards and prepares paychecks. 
D) Cash disbursements signs paychecks and forwards them to the paymaster for distribution. 
A) Routine payroll processing begins with the submission of time cards. 
B) Payroll clerks must verify the hours reported on the time cards. 
C) Payroll reconciles personnel action forms with time cards and prepares paychecks. 
D) Cash disbursements signs paychecks and forwards them to the paymaster for distribution.

Question 18

What is a personnel action form?

Accepted Answer

The personnel action form provides the p

Question 19

Which transaction is not processed in the fixed asset system?

Accepted Answer

A) purchase of building 
B) improvement of equipment 
C) purchase of raw materials 
D) sale of company van 
A) purchase of building 
B) improvement of equipment 
C) purchase of raw materials 
D) sale of company van

Question 20

The payroll department performs all of the following except

Accepted Answer

A) prepares paychecks 
B) transfers adequate funds to the payroll imprest account 
C) updates employee payroll records 
D) prepares the payroll register 
A) prepares paychecks 
B) transfers adequate funds to the payroll imprest account 
C) updates employee payroll records 
D) prepares the payroll register

Work-in-process records are updated by payroll personnel.

Three major tasks are handled by the fixed asset system.What is the purpose of each? What special control issues affect each?

The personnel action form provides authorization control by

Describe an internal control that would prevent an employee from stealing a computer and then reporting it as scrapped.

Outline the key steps taken in a basic technology payroll system when preparing the weekly payroll for a manufacturing firm.

Which department authorizes changes to employee pay rates?

The fixed asset system performs all of the following except

Explain the integration of payroll with the human resource management (HRM)system that often happens in moderate- and large-sized organizations.

Inventory control performs the formal record keeping function for fixed assets.

Discuss the fundamental risk and control issues associated with fixed assets that are different from raw materials and finished goods.

The fixed asset disposal report authorizes the user department to dispose of a fixed asset.

Employee paychecks should be drawn against a special checking account.

Time cards capture the total time an individual worker spends on each production job.

Describe an internal control that would prevent the acquisition of office equipment which is not needed by the firm.

Asset maintenance involves only the recording of depreciation charges.Physical improvements are always expensed.

Which control is not a part of the fixed asset system?

Which of the following statements is not true?

What is a personnel action form?

Which transaction is not processed in the fixed asset system?

The payroll department performs all of the following except

The Information System: an Accountants Perspective

Introduction to Transaction Processing

Ethics,fraud,and Internal Control

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Conversion Cycle

Financial Reporting,and Management Reporting Systems

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Auditing It Controls Part I: Sarbanes-Oxley and It Governance

Auditing It Controls Part II: Security and Access

Auditing It Controls Part III: Systems Development, program Changes, and Application Auditing

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Exam 6: The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

Work-in-process records are updated by payroll personnel.

Three major tasks are handled by the fixed asset system.What is the purpose of each? What special control issues affect each?

The personnel action form provides authorization control by

Describe an internal control that would prevent an employee from stealing a computer and then reporting it as scrapped.

Outline the key steps taken in a basic technology payroll system when preparing the weekly payroll for a manufacturing firm.

Which department authorizes changes to employee pay rates?

The fixed asset system performs all of the following except

Explain the integration of payroll with the human resource management (HRM)system that often happens in moderate- and large-sized organizations.

Inventory control performs the formal record keeping function for fixed assets.

Discuss the fundamental risk and control issues associated with fixed assets that are different from raw materials and finished goods.

The fixed asset disposal report authorizes the user department to dispose of a fixed asset.

Employee paychecks should be drawn against a special checking account.

Time cards capture the total time an individual worker spends on each production job.

Describe an internal control that would prevent the acquisition of office equipment which is not needed by the firm.

Asset maintenance involves only the recording of depreciation charges.Physical improvements are always expensed.

Which control is not a part of the fixed asset system?

Which of the following statements is not true?

What is a personnel action form?

Which transaction is not processed in the fixed asset system?

The payroll department performs all of the following except

The Information System: an Accountants Perspective

Introduction to Transaction Processing

Ethics,fraud,and Internal Control

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Conversion Cycle

Financial Reporting,and Management Reporting Systems

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Auditing It Controls Part I: Sarbanes-Oxley and It Governance

Auditing It Controls Part II: Security and Access

Auditing It Controls Part III: Systems Development, program Changes, and Application Auditing

Filters