20-20 (Objectives 20-2, 20-3) Following are some of the tests of controls and substantive tests of transactions procedures often performed in the payroll and personnel cycle.

• 1. Reconcile the monthly payroll total for direct manufacturing labor with the labor cost distribution.
• 2. Examine the time card for the approval of a foreman.
• 3. Recompute hours on the time card and compare the total with the total hours for which the employee has been paid.
• 4. Perform a surprise payroll payoff and observe employees picking up and signing for their checks.
• 5. Compare the employee name, date, check number, and amounts on cancelled checks with the payroll journal.
• 6. Trace the hours from the employee time cards to job tickets to make sure that the total reconciles, and trace each job ticket to the job-cost record.
• 7. Use audit software to account for the sequence of payroll checks in the payroll journal.

Required

• a. Identify whether each of the procedures is primarily a test of control or a substantive test of transactions.
• b. Identify the transaction-related audit objective(s) of each of the procedures.