Examine the flowchart for payroll shown and do the following:

a. Identify the sections of the flowchart and for each section write an accompanying narrative of the document flows (use pages \(264-265\) as a guide).

b. Supply answers and comments to the internal control questionnaire for payroll controls given below.

c. From a review of the flowchart, the narrative description, and the questionnaire, identify as many control activities as you can. Identify the financial statement assertion or assertions to which each control relates.

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FACTORY EMPLOYEES FACTORY FOREMAN not dital Clock cards Clock card Time clock punched in and out daily Time clock punched in and out daily Clock cards, Clock submitted cards for approval weekly Contral Clock cards reviewed and initialed, summary of regular and overtime hrs. prepared PERSONNEL PAYROLL CLERK NO.1 PAYROLL CLERK NO.2 BOOKKEEPING Payroll update and withholding Copy Copy Copy forms 3 Aby smp! noteles all 13 File reviewed weekly, clock cards prepared EmpFile Clock cards Regular and overtime hrs computed and noted on clock cards Employment status wage rate and authorized payroll deductions checked Change Gross and net payroll computed. Payroll register prepared Clock cards Payroll register Payroll register 2 Copy! 4 Emp File Copyr 10023 (1)