Discussion Question for this Chapter: Following is a selection of items from the payroll processing internal control questionnaire. 1. Are names of terminated employees reported in writing to the payroll department? Required: For each of the preceding questions: 1. Identify the assertion to which the question applies. 2. Specify one test of controls an auditor could use to determine whether the control was operating effectively. 3. Provide an example of an error or fraud that could occur if the control were absent or ineffective. Following is a selection of items from the payroll processing internal control questionnaire. 1. Are timekeeping and cost accounting records (such as hours, dollars) reconciled with payroll department calculations of hours and wages? Required: For each of the preceding questions: 1. Identify the assertion to which the question applies. 2. Specify one test of controls an auditor could use to determine whether the control was operating effectively. 3. Provide an example of an error or fraud that could occur if the control were absent or ineffective