Following is a selection of items from the internal control questionnaire on o payroll system in Exh bit 510 1. Are names of terminated employees reported in writing to the payroll deparment? 2. Are authorizations for deductions signed by the employees on file? 3. Is there a timekeeping department (function) independent of the payroll department? 4. Are timekeeping and cost accounting records (such as hours, dollars) reconciled with payroll department calculations of hours and wages? Required: For each of the four preceding questions. a. Identify the assertion to which the question applies. b. Specify one test of controls an auditor could use to determine whether the control was operating effectively c. Provide an example of an error or froud that could occur if the control were absent or ineffective. d. Idemuify a substantive auditing procedure that could detect errors or frauds that could result from the absence or ineffectiveness of the control items. Complete this question by entering your answers in the tabs below. 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 internal control questionnaire on a payroll system in Exhibit 510. 1. Are names of terminated employees reported in writing to the payroll department? 2. Are authorizations for deductions signed by the employees on file? 3. Is there a timekeeping department (function) independent of the payroll department? 4. Are timekeeping and cost accounting records (such as hours, dollars) reconciled with payroll department calculations of hours and wages? Required: For each of the four preceding questions a. Identify the assertion to which the question opplies. b. Specify one test of controls an auditor could use to determine whether the control was operating effectively. c. Provide an example of an error or fraud that could occur if the control were absent or ineffective d. Identify o substantive auditing procedure that could detect errors or frauds that could result from the absence or ineffectiveness of the control items. Complete this question by entering your answers in the tabs below. Identify a substantive auditing procedure that could detect errors or frauds that could result from the absence or ineffectiveness of the control items. 1. 2. Form 941, For details, select a sample of labor cost analyses and reconcile them to the payroil register for the same period. Following is a selection of items from the intermal control questionnaire on a payroll system in Exhibit 5 io 1. Are names of terminated employees reported in writing to the payroll deparment? 2. Are authorizations for deductions signed by the employees on file? 3. Is there a timekeeping department (function) independent of the payroll department? 4. Are timekeeping and cost occounting records (such as hours, dollars) reconciled with payroll department calculations of hours and wages? Required: For each of the four preceding questions 0 Identify the assertion to which the question opplies. b. Specify one test of controls an auditor could use to determine whether the control was operating effectively. c. Provide an example of an error or froud that could occur if the control were absent or ineffective. d. Identify o substantive ouditing procedure that could detect errors or frouds that could result from the absence or ineffectiveness of the convol tems. Complete this question by entering your answers in the tabs below. Specify one test of controls an auditor could use to determine whether the control was operating effectively. Following is a selection of items from the internal control questionnaire on a payroll system in Exhibit 510. 1. Are names of terminated employees reported in writing to the poyroll department? 2. Are authorizations for deductions signed by the employees on file? 3. Is there a timekeeping department (function) independent of the payroll deportment? 4. Are timekeeping and cost accounting records (such as hours, dollars) reconciled with payroll department calculations of hours and wages? Required: For each of the four preceding questions a. Identify the assertion to which the question applies. b. Specify one test of controls an auditor could use to determine whether the control was operating effectively. c. Provide an example of an error or fraud that could occur if the control were absent or ineffective. d. Identify a substantive ouditing procedure thot could detect errors or frauds that could result from the absence or ineffectiveness of the control items. Complete this question by entering your answers in the tabs below. Identify the assertion to which the question applies. XHIBIT 5.10 Internal Control Questionnaire-Payroll Processing Control Environment 1. Are all employees paid by check or direct deposit? 2. Is a special payroll bank account used? 3. Are payroll checks signed by persons who do not prepare checks or keep cash funds or accounting records? 4. If a check-signing machine is used, are the signature plates controlled? 5. Is the payroll bank account reconciled by someone who does not prepare, sign, or deliver paychecks? 6. Are payroll department personnel rotated in their duties? Required to take vacations? Bonded? 7. Is there a timekeeping department (function) independent of the payroll department? 8. Are authorizations for deductions signed by the employees on file? occurrence 9. Are time cards or piecework reports prepared by the employee approved by her or his supervisor? 10. Is a time clock or other electromechanical or computerized system used? 11. Is the payroll register sheet signed by the employee preparing it and approved prior to payment? 12. Are names of terminated employees reported in writing to the payroll department? 13. Is the payroll periodically compared to personnel files? 14. Are checks distributed by someone other than the employee's immediate supervisor? 15. Are unclaimed wages deposited in a special bank account or otherwise controlled by a responsible officer? Completeness 16. Are names of newly hired employees reported in writing to the payroll department? 17. Are blank payroll checks prenumbered and the numerical sequence checked for missing documents? Accuracy 18. Are all wage rates determined by contract or approved by a personnel officer? 19. Are timekeeping and cost accounting records (such as hours, dollars) reconciled with payroll department calculations of hours and wages? 20. Are payrolls audited periodically by internal auditors? 21. Are individual payroll records reconciled with quarterly tax reports? Classification 22. Do payroll accounting personnel have instructions for classifying payroll debit entries? Cutoff 23. Are monthly, quarterly, and annual wage accruals reviewed by an accounting officer