QUESTION 38

1. The following are all audit procedures to address relevant assertions in the acquisition and payment cycle except for ?

   	a.	To address completeness, trace from file of vendors invoices to the acquisition journal.
   	b.	To address timing compare dates of receiving reports and vendors' invoices with dates in the acquisitions journal
   	c.	To address accuracy compare recorded transactions in the acquisitions journal with the vendors' invoice, receiving report, and other supporting documentation.
   	d.	To addresss completeness, recompute the clerical accuracy on the vendor's invoice, including discounts and freight.

2 points

QUESTION 39

1. The following are all typical test of controls performed for the payroll cycle except for?

   	a.	Review time cards for documented approval to ensure that payroll payments are properly authorized.
   	b.	Examine time cards to verify recorded payments are for actual employees.
   	c.	Observe when recording takes place to ensure that payroll transactions are recorded on a timely basis.
   	d.	Obtain sample of payroll payments and trace to the ledger.

2 points

QUESTION 40

1. If someone made an accusation that there were phantom employees on the payroll, what procedure would detect that fact?

   	a.	Tracing payroll stubs to I-9 forms.
   	b.	Comparing payroll register to the general ledger accounts.
   	c.	Surprise delivery of paychecks to employees.
   	d.	Verification of payroll sub-ledger to general ledger balances.

2 points

QUESTION 41

1. From a financial statement risk perspective, which organizational form is not considered a key control over the payroll and personnel functions?

   	a.	New hire approval form.
   	b.	Employee raise or promotion form.
   	c.	Employee termination form.
   	d.	Employee benefits election form.

2 points

QUESTION 42

1. The payroll master file includes all of the following information except for ?

   	a.	Information on gross pay for each payment period.
   	b.	Deductions made for each gross pay.
   	c.	Net pay, check number and the date.
   	d.	Payroll payments to vendors and contractors.

2 points

QUESTION 43

1. An auditor is asked by her audit manager to plan audit procedures to detect potential payroll & personnel fraud. Which of the following procedures will most likely detect potential fraud?

   	a.	Review cancelled payroll checks for employee name, authorized signature, and proper endorsement, watching specifically for unusual or recurring second endorsements.
   	b.	Observe payroll staff preparing the biweekly payroll specifically focusing on net pay calculation.
   	c.	Trace benefit elections of the employee to the actual payroll ledger and the master file.
   	d.	Validate the payroll master file with the wage schedule by job title.