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For each of the four preceding questions: Identify the assertion to which the question applies. Specify one test of controls an auditor could use to
For each of the four preceding questions:
- Identify the assertion to which the question applies.
- Specify one test of controls an auditor could use to determine whether the control was operating effectively.
- Provide an example of an error or fraud that could occur if the control were absent or ineffective.
- dentify a substantive auditing procedure that could detect errors or frauds that could result from the absence or ineffectiveness of the control items.
- Are names of terminated employees reported in writing to the payroll department?
- Are authorizations for deductions signed by the employee on file?
- Is there a timekeeping department (function) independent of the payroll department?
- Are timekeeping and cost accounting records (such as hours, dollars) reconciled with payroll department calculations of hours and wages?
- For what purposes should an auditors' understanding of the internal control components be used in planning an audit
- What is required for an audit team to assess control risk below the maximum level?
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