AIS 6

Question 1

account for the time spent by the worker on each production job​

Answer 1

job tickets

Question 2

used to capture the total time worked each pay period for payroll calculations​

Answer 2

time cards

Question 3

uses the job tickets to allocate labor costs to WIP accounts ​

summarizes these charges in a labor distribution summary which is forwarded to G/L dept.​

Answer 3

Cost Accounting dept

Question 4

receives personnel action forms and time cards. ​

Answer 4

Payroll dept

Question 5

Uses them to:​

prepare the payroll register​

enter the information into the employee payroll records​

prepare paychecks​

send paychecks to Cash Disbursements and a copy of the payroll register to Accounts Payable​

Answer 5

personnel action forms and time cards. ​

Question 6

prepares a cash disbursements voucher for the total amount of the payroll​

sends copies to the Cash Disbursements and G/L depts. ​

Answer 6

Accounts Payable dept

Question 7

reviews and signs the paychecks and forwards them to a paymaster for distribution to the employees​

writes a check for the payroll and deposits it into the payroll imprest account​

Answer 7

Cash Disbursements dept

Question 8

the personnel action form helps prevent: ​

terminated employees from receiving checks ​

wage rates from being improperly changed for current employees​

Answer 8

Transaction authorization

Question 9

timekeeping and personnel functions should be separated​

Answer 9

Segregation of Duties

Question 10

need to monitor employees to ensure they are not “clocking in” for one another​

Answer 10

Supervision

Question 11

audit trail includes:​
-time cards​
-job tickets​
-disbursement vouchers​
-labor distribution summary​
-payroll register​
-subsidiary ledger accounts​
-general ledger accounts​

Answer 11

Accounting Records

Question 12

need to prevent employees from having improper access to: ​

accounting records, such as time cards which can be altered​

unsigned checks​

Answer 12

Access Controls

Question 13

verification of time cards​

distribution of paychecks to authorized employees​

verification of accuracy of payroll register by A/P dept.​

G/L dept. reconciles the labor distribution summary and the payroll disbursement voucher​

Answer 13

Independent Verification

Question 14

is well-suited to batch processing and sequential files.​

Most employees on the master file receive paychecks periodically.​

Answer 14

Payroll

Question 15

performs the detailed record-keeping, check-writing, and general ledger functions.​

Answer 15

computer program

Question 16

can be reengineered as a part of human resource management (HRM).​

Answer 16

Payroll

Question 17

can process a wide range of personnel-related data, including:​

employee benefits​

labor resource planning​

employee skills and training​

pay rates, deductions, and pay checks​

evaluations​

Answer 17

IT

Question 18

can make changes to the employee file in real time​

Answer 18

Personnel

Question 19

enters job cost data either daily or in real time​

Answer 19

Cost Accounting

Question 20

enters the attendance file daily​

Answer 20

Timekeeping

Question 21

still uses batch processing and prepares all reports, the checks, and updates the general ledger​

Answer 21

Data Processing

Question 22

property, plant, and equipment used in the operation of a business​

Answer 22

Fixed Assets

Question 23

performs record-keeping functions

Answer 23

FAS dept.

Question 24

Involves adjusting FAS subsidiary account balances as assets depreciate​

Answer 24

Asset Maintenance​

Question 25

are internal transactions that the FAS system bases upon a depreciation schedule.​

Answer 25

Depreciation calculations

Question 26

must also be recorded to increase the subsidiary account balance and depreciation schedule.​

Answer 26

Physical improvements

Question 27

At the end of an asset’s useful life (or earlier disposition), the asset must be removed from the records and depreciation schedule​

Answer 27

Asset Disposal​

Question 28

Disposals require disposal request forms and disposal reports as source documents.​

Answer 28

Asset Disposal​

Question 29

are digitally recorded in the system, along with information such as its useful life, depreciation methods, etc. ​

Answer 29

Receipt of assets

Question 30

automatically:​ post adjusting entries to the fixed asset control account in the general ledger​ record losses or gains associated with the disposal transaction​ prepare journal voucher record

Answer 30

Computerized FAS (Fixed Asset System)- Disposal

Question 31

should be formal and explicit because of high cost of FAS:​ acquisitions ​ changes in depreciation methods ​

Answer 31

Authorization

Question 32

threat of misappropriation requires constant management oversight: ​

Answer 32

Supervision

Question 33

secure physical locations of assets ​

Answer 33

theft

Question 34

monitor on-the-job activities

Answer 34

misuse

Question 35

internal auditors should periodically verify FAS records:​

Answer 35

Independent Verification

Question 36

the reasonableness of factors used in decisions (useful life, discounts, budgeting model) ​ location, condition, and fair value of the fixed asset records in the subsidiary ledger​ the programming logic for automatic calculations (depreciation)​

Answer 36

Independent Verification