employers, and references: 4 ing payroll. preparation of payroll. 17-18 (OBJECTIVES 11-2, 11-3, 11-4) Each of the following internal controls has been taken rom a standard internal control questionnaire used by a CPA firm for assessing control isk in the payroll and personnel cycle. 1. Human resource policies require an investigation of an employment application from new employees. Investigation includes checking the employee's background, former 12. Approval of department head or foreman on time records is required before prepar- - 3. All prenumbered time records are accounted for before beginning data entry for 4. The payroll accounting software calculates gross and net pay based on hours input- ted and information in employee master files, and payroll accounting personnel double-check the mathematical accuracy on a test basis. 5. The payroll accounting software application will not accept data input for an em- ployee number not contained in the employee master file 6. Persons preparing the payroll do not perform other payroll duties (e.g., human re- sources or approval of time records) nor do they have access to payroll data master files or cash. 7. Written termination notices, with properly documented reasons for termination, and approval by an appropriate official are required.. 8. All checks and notices of electronic payments not distributed to employees are re- turned to the treasurer for safekeeping and follow-up. 9. Online ability to add employees or change pay rates to the payroll master file is re- stricted via passwords to authorized human resource personnel. a. For each internal control, identify the type(s) of specific control activity (or activities) Requir to which it applies (such as adequate documents and records or physical control over assets and records) b. For each internal control, identify the transaction-related audit objective(s) to which it applies. c. For each internal control, identify a specific misstatement that is likely to be pre- vented if the control exists and is effective. d. For each control, list a specific misstatement that could result from the absence of the c. For each control, identify one audit test that the auditor could use to uncover mis- control. statements resulting from the absence of the control