Question 2: The auditor of Rice Computing Services is concerned with a weakness in controls over the payroll and personnel cycle. As a result, she conducts the following substantive tests of transactions related to payroll: 1. First, she examines the time records to collect information on hours worked and re- computes the total hours from the original time cards. 2. Next, she compares the payments indicated on the company's bank statement with the disbursements listed in the company's payroll journal. 3. Similarly, she compares the dates of the recorded payments in the payroll journal with the date on cancelled checks and direct deposit records and also compare these with the bank statements. 4. Finally, she compares the endorsements on cancelled checks and compares the name, amount, and dates with the payroll journal. a. For each of the substantive tests of payroll related transactions listed above, indicate which transaction related audit objective the auditor seeks to complete with the specific procedure used. b. The auditor initiated each of the above procedures because she perceived a weak- ness in certain internal controls. Identify the key internal control which she is likely to have found a deficiency based on the substantive tests of transactions that she used. c. Indicate the common test of controls that are used to determine if that particular control is sufficient or functioning property