Auditing

b. Each of the following internal controls has been taken from a standard internal control questionnaire used by a CPA firm for assessing control risk in the payroll and personnel cycle. 1. Approval of department head or foreman on time cards is required before preparing payroll. 2. All pre-numbered time cards are accounted for before beginning data entry for preparation of checks. 3. The computer calculates gross and net pay based on hours inputted and information in employee master files, and payroll accounting personnel double-check the mathematical accuracy on a test basis. 4. All voided and spoiled payroll checks are properly mutilated and retained. 5. Human resources policies require an investigation of an employment application from new employees. Investigation includes checking the employee's background, former employers, and references. Question: For each internal control, identify a specific misstatement that is likely to be prevented if the control exists and is effective