AUD 3 Internal Control 15 - 1 Operating Cycles Personnel and Payroll & Service Organizations

Question 1

“This is the authorization department that is responsible for hiring of new employees, approval of changes in pay rates, and termination of employees.”

What is most likely the name of this department?

Answer 1

• Personnel

– This is the authorization department that is responsible for hiring of new employees, approval of changes in pay rates, and termination of employees.

Question 2

“This is the recording department that performs the calculation of payroll amounts.”

What is most likely the name of this department?

Answer 2

• Payroll

– This is the recording department that performs the calculation of payroll amounts.

They will examine and then update records based on authorization forms for hiring, firing, and pay rates received from personnel, and will calculate payroll based on time sheets and other reports approved by appropriate supervisors in the various operational departments of the company.

They update pay records and prepare vouchers for the amount of payment.

They may also be involved in the preparation of pay checks as long as they do not have the ability to sign them and do not receive custody of signed but unclaimed pay checks that have not been voided.

Question 3

“They may also be involved in the preparation of pay checks as long as they do not have the ability to sign them and do not receive custody of signed but unclaimed pay checks that have not been voided.”

What is most likely the name of this department?

Answer 3

• Payroll

– This is the recording department that performs the calculation of payroll amounts.

They will examine and then update records based on authorization forms for hiring, firing, and pay rates received from personnel, and will calculate payroll based on time sheets and other reports approved by appropriate supervisors in the various operational departments of the company.

They update pay records and prepare vouchers for the amount of payment.

They may also be involved in the preparation of pay checks as long as they do not have the ability to sign them and do not receive custody of signed but unclaimed pay checks that have not been voided.

Question 4

“They will examine and then update records based on authorization forms for hiring, firing, and pay rates received from personnel, and will calculate payroll based on time sheets and other reports approved by appropriate supervisors in the various operational departments of the company.”

What is most likely the name of this department?

Answer 4

• Payroll

– This is the recording department that performs the calculation of payroll amounts.

They will examine and then update records based on authorization forms for hiring, firing, and pay rates received from personnel, and will calculate payroll based on time sheets and other reports approved by appropriate supervisors in the various operational departments of the company.

They update pay records and prepare vouchers for the amount of payment.

They may also be involved in the preparation of pay checks as long as they do not have the ability to sign them and do not receive custody of signed but unclaimed pay checks that have not been voided.

Question 5

“They update pay records and prepare vouchers for the amount of payment.”

What is most likely the name of this department?

Answer 5

• Payroll

– This is the recording department that performs the calculation of payroll amounts.

They will examine and then update records based on authorization forms for hiring, firing, and pay rates received from personnel, and will calculate payroll based on time sheets and other reports approved by appropriate supervisors in the various operational departments of the company.

They update pay records and prepare vouchers for the amount of payment.

They may also be involved in the preparation of pay checks as long as they do not have the ability to sign them and do not receive custody of signed but unclaimed pay checks that have not been voided.

Question 6

“They will examine and then update records based on authorization forms for hiring, firing, and pay rates received from personnel,”

What is most likely the name of this department?

Answer 6

• Payroll

– This is the recording department that performs the calculation of payroll amounts.

They will examine and then update records based on authorization forms for hiring, firing, and pay rates received from personnel, and will calculate payroll based on time sheets and other reports approved by appropriate supervisors in the various operational departments of the company.

They update pay records and prepare vouchers for the amount of payment.

They may also be involved in the preparation of pay checks as long as they do not have the ability to sign them and do not receive custody of signed but unclaimed pay checks that have not been voided.

Question 7

“They will calculate payroll based on time sheets.”

What is most likely the name of this department?

Answer 7

• Payroll

– This is the recording department that performs the calculation of payroll amounts.

They will examine and then update records based on authorization forms for hiring, firing, and pay rates received from personnel, and will calculate payroll based on time sheets and other reports approved by appropriate supervisors in the various operational departments of the company.

They update pay records and prepare vouchers for the amount of payment.

They may also be involved in the preparation of pay checks as long as they do not have the ability to sign them and do not receive custody of signed but unclaimed pay checks that have not been voided.

Question 8

“They will calculate payroll based on other reports approved by appropriate supervisors in the various operational departments of the company.

What is most likely the name of this department?

Answer 8

• Payroll

– This is the recording department that performs the calculation of payroll amounts.

They will examine and then update records based on authorization forms for hiring, firing, and pay rates received from personnel, and will calculate payroll based on time sheets and other reports approved by appropriate supervisors in the various operational departments of the company.

They update pay records and prepare vouchers for the amount of payment.

They may also be involved in the preparation of pay checks as long as they do not have the ability to sign them and do not receive custody of signed but unclaimed pay checks that have not been voided.

Question 9

“This is the custody department that is responsible for the signing and distribution of pay checks to employees.”

What is most likely the name of this department?

Answer 9

• Treasurer

– This is the custody department that is responsible for the signing and distribution of pay checks to employees, and unclaimed paychecks should always be retained within this same department until they are either distributed or voided.

If payment of wages is in cash, employees should be required to sign a receipt for the amount received.

Question 10

“Unclaimed paychecks should always be retained within this same department until they are either distributed or voided.”

What is most likely the name of this department?

Answer 10

• Treasurer

– This is the custody department that is responsible for the signing and distribution of pay checks to employees, and unclaimed paychecks should always be retained within this same department until they are either distributed or voided.

If payment of wages is in cash, employees should be required to sign a receipt for the amount received.

Question 11

“If payment of wages is in cash, employees should be required to sign a receipt for the amount received.

This is the custody department that is responsible for the signing and distribution of pay to employees”

What is most likely the name of this department?

Answer 11

• Treasurer

– This is the custody department that is responsible for the signing and distribution of pay checks to employees, and unclaimed paychecks should always be retained within this same department until they are either distributed or voided.

If payment of wages is in cash, employees should be required to sign a receipt for the amount received.

Question 12

“Bank Reconciliation”

What is most likely the name of this department?

Answer 12

• Controller – Comparison

– Bank Reconciliation.

Question 13

“Comparison”

What is most likely the name of this department?

Answer 13

• Controller – Comparison

– Bank Reconciliation.

Question 14

What department responsible for:

Hire
Fire
Salary Rates

Answer 14

What department responsible for:

Hire
Fire
Salary Rates

Answer: Personnel (Authorize)

Question 15

What department responsible for pay calculation?

Answer 15

What department responsible for pay calculation?

Payroll (Recording)

Question 16

What department responsible for signs and distributes checks?

Answer 16

What department responsible for signs and distributes checks?

Treasurer (Custody)

Question 17

What department have custody of cash?

Answer 17

What department have custody of cash?

Treasurer (Custody)

Question 18

Who perform bank reconciliation?

Answer 18

Who perform bank reconciliation?

Controller (Comparison)

Question 19

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel ______;
• Hiring and deduction authorization forms (W-4);
• Time cards;
• Payroll register;
• Paychecks;
• Payroll cost allocation; and
• Bank reconciliations.

Answer 19

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time cards;
• Payroll register;
• Paychecks;
• Payroll cost allocation; and
• Bank reconciliations.

Question 20

What is key documents generated in the personnel and payroll cycle?

Key Documents

• _________ records;
• Hiring and deduction authorization forms (W-4);
• Time cards;
• Payroll register;
• Paychecks;
• Payroll cost allocation; and
• Bank reconciliations.

Answer 20

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time cards;
• Payroll register;
• Paychecks;
• Payroll cost allocation; and
• Bank reconciliations.

Question 21

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (____);
• Time cards;
• Payroll register;
• Paychecks;
• Payroll cost allocation; and
• Bank reconciliations.

Answer 21

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time cards;
• Payroll register;
• Paychecks;
• Payroll cost allocation; and
• Bank reconciliations.

Question 22

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• ______ and __________ authorization forms (W-4);
• Time cards;
• Payroll register;
• Paychecks;
• Payroll cost allocation; and
• Bank reconciliations.

Answer 22

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time cards;
• Payroll register;
• Paychecks;
• Payroll cost allocation; and
• Bank reconciliations.

Question 23

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction ______________ forms (W-4);
• Time cards;
• Payroll register;
• Paychecks;
• Payroll cost allocation; and
• Bank reconciliations.

Answer 23

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time cards;
• Payroll register;
• Paychecks;
• Payroll cost allocation; and
• Bank reconciliations.

Question 24

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization _____ (W-4);
• Time cards;
• Payroll register;
• Paychecks;
• Payroll cost allocation; and
• Bank reconciliations.

Answer 24

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time cards;
• Payroll register;
• Paychecks;
• Payroll cost allocation; and
• Bank reconciliations.

Question 25

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• _____ cards;
• Payroll register;
• Paychecks;
• Payroll cost allocation; and
• Bank reconciliations.

Answer 25

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time cards;
• Payroll register;
• Paychecks;
• Payroll cost allocation; and
• Bank reconciliations.

Question 26

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time _____;
• Payroll register;
• Paychecks;
• Payroll cost allocation; and
• Bank reconciliations.

Answer 26

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time cards;
• Payroll register;
• Paychecks;
• Payroll cost allocation; and
• Bank reconciliations.

Question 27

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time cards;
• ________ register;
• Paychecks;
• Payroll cost allocation; and
• Bank reconciliations.

Answer 27

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time cards;
• Payroll register;
• Paychecks;
• Payroll cost allocation; and
• Bank reconciliations.

Question 28

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time cards;
• Payroll _______;
• Paychecks;
• Payroll cost allocation; and
• Bank reconciliations.

Answer 28

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time cards;
• Payroll register;
• Paychecks;
• Payroll cost allocation; and
• Bank reconciliations.

Question 29

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time cards;
• Payroll register;
• __________;
• Payroll cost allocation; and
• Bank reconciliations.

Answer 29

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time cards;
• Payroll register;
• Paychecks;
• Payroll cost allocation; and
• Bank reconciliations.

Question 30

What is W-4 ?

_______ and __________ authorization forms

Answer 30

One of the key documents generated in this personnel and payroll cycle

W-4 = Hiring and deduction authorization forms

Question 31

What is W-4 ?

_______ and __________ _______________forms

Answer 31

One of the key documents generated in this personnel and payroll cycle

W-4 = Hiring and deduction authorization forms

Question 32

What is W-4 ?

Answer 32

W-4 = Hiring and deduction authorization forms

Question 33

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time cards;
• Payroll register;
• Paychecks;
• ______ cost allocation; and
• Bank reconciliations.

Answer 33

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time cards;
• Payroll register;
• Paychecks;
• Payroll cost allocation; and
• Bank reconciliations.

Question 34

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time cards;
• Payroll register;
• Paychecks;
• Payroll ____ allocation; and
• Bank reconciliations.

Answer 34

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time cards;
• Payroll register;
• Paychecks;
• Payroll cost allocation; and
• Bank reconciliations.

Question 35

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time cards;
• Payroll register;
• Paychecks;
• Payroll cost allocation; and
• Bank reconciliations.

Answer 35

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time cards;
• Payroll register;
• Paychecks;
• Payroll cost allocation; and
• Bank reconciliations.

Question 36

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time cards;
• Payroll register;
• Paychecks;
• Payroll cost _______; and
• Bank reconciliations.

Answer 36

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time cards;
• Payroll register;
• Paychecks;
• Payroll cost allocation; and
• Bank reconciliations.

Question 37

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time cards;
• Payroll register;
• Paychecks;
• Payroll cost allocation; and
• ____ reconciliations.

Answer 37

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time cards;
• Payroll register;
• Paychecks;
• Payroll cost allocation; and
• Bank reconciliations.

Question 38

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time cards;
• Payroll register;
• Paychecks;
• Payroll cost allocation; and
• Bank __________.

Answer 38

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time cards;
• Payroll register;
• Paychecks;
• Payroll cost allocation; and
• Bank reconciliations.

Question 39

What is key documents generated in the personnel and payroll cycle?

Key Documents

• _________ records;
• Hiring and ________ authorization forms (W-4);
• _____ cards;
• ________ register;
• Paychecks;
• Payroll cost allocation; and
• Bank reconciliations.

Answer 39

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time cards;
• Payroll register;
• Paychecks;
• Payroll cost allocation; and
• Bank reconciliations.

Question 40

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time cards;
• Payroll ________;
• Pay_______;
• Payroll cost _________; and
• Bank ____________.

Answer 40

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time cards;
• Payroll register;
• Paychecks;
• Payroll cost allocation; and
• Bank reconciliations.

Question 41

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• _______ and deduction authorization forms (W-4);
• Time _____;
• Payroll register;
• Paychecks;
• _______ cost allocation; and
• Bank reconciliations.

Answer 41

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time cards;
• Payroll register;
• Paychecks;
• Payroll cost allocation; and
• Bank reconciliations.

Question 42

What is key documents generated in the personnel and payroll cycle?

Key Documents

• _________ records;
• Hiring and ________ authorization forms (W-4);
• _____ cards;
• ________ register;
• ____________;
• Payroll ____ allocation; and
• _____ reconciliations.

Answer 42

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time cards;
• Payroll register;
• Paychecks;
• Payroll cost allocation; and
• Bank reconciliations.

Question 43

What is key documents generated in the personnel and payroll cycle?

Key Documents

• ________ records;
• Hiring and deduction authorization forms (____);
• Time ______;
• Payroll ________;
• Pay_______;
• Payroll cost _________; and
• Bank ____________.

Answer 43

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time cards;
• Payroll register;
• Paychecks;
• Payroll cost allocation; and
• Bank reconciliations.

Question 44

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel _______;
• Hiring and deduction authorization forms (W-4);
• Time cards;

Answer 44

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time cards;

Question 45

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction _____________ forms (W-4);
• Time cards;

Answer 45

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time cards;

Question 46

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time ____;

Answer 46

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Personnel records;
• Hiring and deduction authorization forms (W-4);
• Time cards;

Question 47

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Payroll ________;
• Paychecks;

Answer 47

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Payroll register;
• Paychecks;

Question 48

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Payroll register;
• __________;

Answer 48

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Payroll register;
• Paychecks;

Question 49

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Payroll cost ___________; and
• Bank reconciliations.

Answer 49

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Payroll cost allocation; and
• Bank reconciliations.

Question 50

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Payroll cost allocation; and
• Bank ____________.

Answer 50

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Payroll cost allocation; and
• Bank reconciliations.

Question 51

What is key documents generated in the personnel and payroll cycle?

Key Documents

• _______ cost allocation; and
• Bank reconciliations.

Answer 51

What is key documents generated in the personnel and payroll cycle?

Key Documents

• Payroll cost allocation; and
• Bank reconciliations.

Question 52

Personnel

– This is the ____________ department that is responsible for hiring of new employees, approval of changes in pay rates, and termination of employees.

Answer 52

Personnel

– This is the authorization department that is responsible for hiring of new employees, approval of changes in pay rates, and termination of employees.

Question 53

Personnel

– This is the authorization department that is __________ for hiring of new employees, approval of changes in pay rates, and termination of employees.

Answer 53

Personnel

– This is the authorization department that is responsible for hiring of new employees, approval of changes in pay rates, and termination of employees.

Question 54

Personnel

– This is the authorization department that is responsible for

hiring of new __________,
approval of changes in pay rates,
and termination of employees.

Answer 54

Personnel

– This is the authorization department that is responsible for

hiring of new employees,
approval of changes in pay rates,
and termination of employees.

Question 55

Personnel

– This is the authorization department that is responsible for

______ of new employees,
approval of changes in pay rates,
and termination of employees.

Answer 55

Personnel

– This is the authorization department that is responsible for

hiring of new employees,
approval of changes in pay rates,
and termination of employees.

Question 56

Personnel

– This is the authorization department that is responsible for

hiring of new employees,
_________ of changes in pay rates,
and termination of employees.

Answer 56

Personnel

– This is the authorization department that is responsible for

hiring of new employees,
approval of changes in pay rates,
and termination of employees.

Question 57

Personnel

– This is the authorization department that is responsible for

hiring of new employees,
approval of changes in ___ ______,
and termination of employees.

Answer 57

Personnel

– This is the authorization department that is responsible for

hiring of new employees,
approval of changes in pay rates,
and termination of employees.

Question 58

Personnel

– This is the authorization department that is responsible for

hiring of new employees,
approval of changes in pay rates,
and ____________ of employees.

Answer 58

Personnel

– This is the authorization department that is responsible for

hiring of new employees,
approval of changes in pay rates,
and termination of employees.

Question 59

Personnel

– This is the authorization department that is responsible for

hiring of new employees,
approval of _______ in pay rates,
and termination of employees.

Answer 59

Personnel

– This is the authorization department that is responsible for

hiring of new employees,
approval of changes in pay rates,
and termination of employees.

Question 60

Personnel

– This is the authorization department that is responsible for

hiring of new employees,
approval of changes in pay rates,
and termination of __________.

Answer 60

Personnel

– This is the authorization department that is responsible for

hiring of new employees,
approval of changes in pay rates,
and termination of employees.

Question 61

Payroll

– This is the __________ department that performs the calculation of payroll amounts.

Answer 61

Payroll

– This is the recording department that performs the calculation of payroll amounts.

Question 62

Payroll

– This is the recording department that performs the __________ of payroll amounts.

Answer 62

Payroll

– This is the recording department that performs the calculation of payroll amounts.

Question 63

Payroll

– This is the recording department that performs the calculation of ________ amounts.

Answer 63

Payroll

– This is the recording department that performs the calculation of payroll amounts.

Question 64

Payroll

– The payroll department will

________ and then update records based on authorization forms

Answer 64

Payroll

– The payroll department will

examine and then update records based on authorization forms

Question 65

Payroll

– The payroll department will

examine and then _____ records based on authorization forms

Answer 65

Payroll

– The payroll department will

examine and then update records based on authorization forms

Question 66

Payroll

– The payroll department will

examine and then update records based on ____________ forms

Answer 66

Payroll

– The payroll department will

examine and then update records based on authorization forms

Question 67

Payroll

– The payroll department will

examine and then update records based on authorization forms for

hiring, firing, and pay rates ________ from personnel,

Answer 67

Payroll

– The payroll department will

examine and then update records based on authorization forms for

hiring, firing, and pay rates received from personnel,

Question 68

Payroll

– The payroll department will

examine and then update records based on authorization forms for

hiring, firing, and pay rates received from __________,

Answer 68

Payroll

– The payroll department will

examine and then update records based on authorization forms for

hiring, firing, and pay rates received from personnel,

Question 69

Payroll

– The payroll department will

examine and then update records based on authorization forms for

hiring, firing, and pay rates received from personnel,

and will _________ payroll based on time sheets

Answer 69

Payroll

– The payroll department will

examine and then update records based on authorization forms for

hiring, firing, and pay rates received from personnel,

and will calculate payroll based on time sheets

Question 70

Payroll

– The payroll department will

examine and then update records based on authorization forms for

hiring, firing, and pay rates received from personnel,

and will calculate ______ based on time sheets

Answer 70

Payroll

– The payroll department will

examine and then update records based on authorization forms for

hiring, firing, and pay rates received from personnel,

and will calculate payroll based on time sheets

Question 71

Payroll

– The payroll department will

examine and then update records based on authorization forms for

hiring, firing, and pay rates received from personnel,

and will calculate payroll based on time sheets and other reports

_________ by appropriate supervisors in the various operational departments of the company.

Answer 71

Payroll

– The payroll department will

examine and then update records based on authorization forms for

hiring, firing, and pay rates received from personnel,

and will calculate payroll based on time sheets and other reports

approved by appropriate supervisors in the various operational departments of the company.

Question 72

Payroll

– The payroll department will

examine and then update records based on authorization forms for

hiring, firing, and pay rates received from personnel,

and will calculate payroll based on time sheets and other reports

approved by appropriate supervisors in the various __________ departments of the company.

Answer 72

Payroll

– The payroll department will

examine and then update records based on authorization forms for

hiring, firing, and pay rates received from personnel,

and will calculate payroll based on time sheets and other reports

approved by appropriate supervisors in the various operational departments of the company.

Question 73

Treasurer

– This is the _______ department that is responsible for

the signing and distribution of pay checks to employees,

Answer 73

Treasurer

– This is the custody department that is responsible for

the signing and distribution of pay checks to employees,

Question 74

Treasurer

– This is the custody department that is responsible for

the ________ and distribution of pay checks to employees,

Answer 74

Treasurer

– This is the custody department that is responsible for

the signing and distribution of pay checks to employees,

Question 75

Treasurer

– This is the custody department that is responsible for

the signing and _________ of pay checks to employees,

Answer 75

Treasurer

– This is the custody department that is responsible for

the signing and distribution of pay checks to employees,

Question 76

Treasurer

– This is the custody department that is responsible for

the signing and distribution of ___________ to employees,

Answer 76

Treasurer

– This is the custody department that is responsible for

the signing and distribution of pay checks to employees,

Question 77

Treasurer

– This is the custody department that is responsible for

the signing and distribution of pay checks to employees,

and ________ paychecks should always be retained within this same department until they are either distributed or voided.

Answer 77

Treasurer

– This is the custody department that is responsible for

the signing and distribution of pay checks to employees,

and unclaimed paychecks should always be retained within this same department until they are either distributed or voided.

Question 78

Treasurer

– This is the custody department that is responsible for

the signing and distribution of pay checks to employees,

and unclaimed paychecks should always be _________ within this same department until they are either distributed or voided.

Answer 78

Treasurer

– This is the custody department that is responsible for

the signing and distribution of pay checks to employees,

and unclaimed paychecks should always be retained within this same department until they are either distributed or voided.

Question 79

Treasurer

– This is the custody department that is responsible for

the signing and distribution of pay checks to employees,

and unclaimed paychecks should always be retained within this same department until they are either __________ or voided.

Answer 79

Treasurer

– This is the custody department that is responsible for

the signing and distribution of pay checks to employees,

and unclaimed paychecks should always be retained within this same department until they are either distributed or voided.

Question 80

Treasurer

– This is the custody department that is responsible for

the signing and distribution of pay checks to employees,

and unclaimed paychecks should always be retained within this same department until they are either distributed or _______.

Answer 80

Treasurer

– This is the custody department that is responsible for

the signing and distribution of pay checks to employees,

and unclaimed paychecks should always be retained within this same department until they are either distributed or voided.

Question 81

Controller – Comparison

– Bank ____________.

Answer 81

Controller – Comparison

– Bank Reconciliation.

Question 82

Controller – ____________

– Bank Reconciliation.

Answer 82

Controller – Comparison

– Bank Reconciliation.

Question 83

• ___________ – (authorization)

Hire, Fire, Salary Rates

Answer 83

• Personnel – (authorization)

Hire, Fire, Salary Rates

Question 84

• ______ – (recording)

Calculate Pay

Answer 84

• Payroll – (recording)

Calculate Pay

Question 85

• __________ – (custody)
Signs and distributes checks
Custody of cash

Answer 85

• Treasurer – (custody)
Signs and distributes checks
Custody of cash

Question 86

• _________ – (comparison)

Bank Reconciliation

Answer 86

• Controller – (comparison)

Bank Reconciliation

Question 87

“The department is involved with the personnel records and all the hiring forms, including the deduction forms for payroll deductions.”

What is most likely the name of this department?

Answer 87

Personnel Department (HR)

The personnel department is involved with the personnel records and all the hiring forms, including the deduction forms for payroll deductions.

The personnel department approves changes in pay rates and deductions from employee salaries.

The personnel department is also involved in the termination process.

It is essential that the personnel department promptly sends employees’ termination notices to the payroll department.

Question 88

“The department approves changes in pay rates and deductions from employee salaries.”

What is most likely the name of this department?

Answer 88

Personnel Department (HR)

The personnel department is involved with the personnel records and all the hiring forms, including the deduction forms for payroll deductions.

The personnel department approves changes in pay rates and deductions from employee salaries.

The personnel department is also involved in the termination process.

It is essential that the personnel department promptly sends employees’ termination notices to the payroll department.

Question 89

“The department is also involved in the termination process.”

What is most likely the name of this department?

Answer 89

Personnel Department (HR)

The personnel department is involved with the personnel records and all the hiring forms, including the deduction forms for payroll deductions.

The personnel department approves changes in pay rates and deductions from employee salaries.

The personnel department is also involved in the termination process.

It is essential that the personnel department promptly sends employees’ termination notices to the payroll department.

Question 90

“It is essential that the department promptly sends employees’ termination notices to the payroll department.”

What is most likely the name of this department?

Answer 90

Personnel Department (HR)

The personnel department is involved with the personnel records and all the hiring forms, including the deduction forms for payroll deductions.

The personnel department approves changes in pay rates and deductions from employee salaries.

The personnel department is also involved in the termination process.

It is essential that the personnel department promptly sends employees’ termination notices to the payroll department.

Question 91

“The department examines authorization forms from the personnel department for new employees.”

What is most likely the name of this department?

Answer 91

Payroll Department

The payroll department examines authorization forms from the personnel department for new employees and adds the employees’ names to the payroll processing program.

The payroll department promptly updates the records for changes in deductions, pay rates, and terminations.

The payroll department enters all the time card and wage rate information into the payroll register.

Payroll checks are prepared by the payroll department and submitted to the treasurer for signature.

Question 92

“The department adds the employees’ names to the payroll processing program.”

What is most likely the name of this department?

Answer 92

Payroll Department

The payroll department examines authorization forms from the personnel department for new employees and adds the employees’ names to the payroll processing program.

The payroll department promptly updates the records for changes in deductions, pay rates, and terminations.

The payroll department enters all the time card and wage rate information into the payroll register.

Payroll checks are prepared by the payroll department and submitted to the treasurer for signature.

Question 93

“The department promptly updates the records for changes in deductions.”

What is most likely the name of this department?

Answer 93

Payroll Department

The payroll department examines authorization forms from the personnel department for new employees and adds the employees’ names to the payroll processing program.

The payroll department promptly updates the records for changes in deductions, pay rates, and terminations.

The payroll department enters all the time card and wage rate information into the payroll register.

Payroll checks are prepared by the payroll department and submitted to the treasurer for signature.

Question 94

“The department promptly updates the records for changes in pay rates.”

What is most likely the name of this department?

Answer 94

Payroll Department

The payroll department examines authorization forms from the personnel department for new employees and adds the employees’ names to the payroll processing program.

The payroll department promptly updates the records for changes in deductions, pay rates, and terminations.

The payroll department enters all the time card and wage rate information into the payroll register.

Payroll checks are prepared by the payroll department and submitted to the treasurer for signature.

Question 95

“The department promptly updates the records for employee terminations.”

What is most likely the name of this department?

Answer 95

Payroll Department

The payroll department examines authorization forms from the personnel department for new employees and adds the employees’ names to the payroll processing program.

The payroll department promptly updates the records for changes in deductions, pay rates, and terminations.

The payroll department enters all the time card and wage rate information into the payroll register.

Payroll checks are prepared by the payroll department and submitted to the treasurer for signature.

Question 96

“The department enters all the time card and wage rate information into the payroll register.”

What is most likely the name of this department?

Answer 96

Payroll Department

The payroll department examines authorization forms from the personnel department for new employees and adds the employees’ names to the payroll processing program.

The payroll department promptly updates the records for changes in deductions, pay rates, and terminations.

The payroll department enters all the time card and wage rate information into the payroll register.

Payroll checks are prepared by the payroll department and submitted to the treasurer for signature.

Question 97

“The department prepares paychecks.”

What is most likely the name of this department?

Answer 97

Payroll Department

The payroll department examines authorization forms from the personnel department for new employees and adds the employees’ names to the payroll processing program.

The payroll department promptly updates the records for changes in deductions, pay rates, and terminations.

The payroll department enters all the time card and wage rate information into the payroll register.

Payroll checks are prepared by the payroll department and submitted to the treasurer for signature.

Question 98

“The department submits paychecks to the treasurer for signature.”

What is most likely the name of this department?

Answer 98

Payroll Department

The payroll department examines authorization forms from the personnel department for new employees and adds the employees’ names to the payroll processing program.

The payroll department promptly updates the records for changes in deductions, pay rates, and terminations.

The payroll department enters all the time card and wage rate information into the payroll register.

Payroll checks are prepared by the payroll department and submitted to the treasurer for signature.

Question 99

“The department prepares a payroll cost allocation based on the time card information.”

What is most likely the name of this department?

Answer 99

Payroll Department

The payroll department also prepares a payroll cost allocation based on the time card information.

The payroll cost allocation is used to distribute payroll costs over the various accounts affected.

Question 100

What is payroll cost allocation?

The payroll cost allocation is used to _________ payroll costs over the various accounts affected.

Answer 100

The payroll cost allocation is used to distribute payroll costs over the various accounts affected.

Question 101

The payroll cost allocation is used to distribute payroll costs over the _______ accounts affected.

Answer 101

The payroll cost allocation is used to distribute payroll costs over the various accounts affected.

Question 102

The payroll cost allocation is used to distribute payroll costs over the various ________ affected.

Answer 102

The payroll cost allocation is used to distribute payroll costs over the various accounts affected.

Question 103

The payroll cost allocation is used to distribute payroll costs over the various accounts __________.

Answer 103

The payroll cost allocation is used to distribute payroll costs over the various accounts affected.

Question 104

The payroll cost allocation is used to distribute payroll costs ____ the various accounts affected.

Answer 104

The payroll cost allocation is used to distribute payroll costs over the various accounts affected.

Question 105

What is employee responsibility?

The employee _________ a time card, and _______ it to the supervisor for authorization.

The time card is then ____ to the payroll department.

Answer 105

Employee

The employee prepares a time card, and submits it to the supervisor for authorization.

The time card is then sent to the payroll department.

Question 106

What is employee responsibility?

The employee prepares a __________, and submits it to the supervisor for authorization.

The ___________ is then sent to the payroll department.

Answer 106

Employee

The employee prepares a time card, and submits it to the supervisor for authorization.

The time card is then sent to the payroll department.

Question 107

What is employee responsibility?

The employee prepares a time card, and submits it to the ________ for authorization.

The time card is then sent to the _______ department.

Answer 107

Employee

The employee prepares a time card, and submits it to the supervisor for authorization.

The time card is then sent to the payroll department.

Question 108

What is employee responsibility?

The employee prepares a time card, and submits it to the supervisor for ____________.

The time card is then sent to the payroll ___________.

Answer 108

Employee

The employee prepares a time card, and submits it to the supervisor for authorization.

The time card is then sent to the payroll department.

Question 109

What is employee responsibility?

The employee _________ a __________, and submits it to the supervisor for authorization.

The ___________ is then sent to the payroll department.

Answer 109

Employee

The employee prepares a time card, and submits it to the supervisor for authorization.

The time card is then sent to the payroll department.

Question 110

What is employee responsibility?

Answer 110

Employee

The employee prepares a time card, and submits it to the supervisor for authorization.

The time card is then sent to the payroll department.

Question 111

“Receives the checks from the payroll department and signs them.

What is most likely the name of this position ?

Answer 111

Treasurer

The treasurer receives the checks from the payroll department and signs them.

The treasurer is responsible for distribution of paychecks.

Unclaimed paychecks should remain in the custody of the treasurer.

Unclaimed checks should not be returned to the payroll department.

Question 112

“Responsible for distribution of paychecks.”

What is most likely the name of this department?

Answer 112

Treasurer

The treasurer receives the checks from the payroll department and signs them.

The treasurer is responsible for distribution of paychecks.

Unclaimed paychecks should remain in the custody of the treasurer.

Unclaimed checks should not be returned to the payroll department.

Question 113

Where does the unclaimed paychecks go?

Answer 113

Treasurer

Unclaimed paychecks should remain in the custody of the treasurer.

Unclaimed checks should not be returned to the payroll department.

Question 114

Will unclaimed paychecks be returned to payroll department?

Answer 114

Will unclaimed paychecks be returned to payroll department?

Answer: No

Unclaimed paychecks should remain in the custody of the treasurer.

Treasurer

Unclaimed paychecks should remain in the custody of the treasurer.

Unclaimed checks should not be returned to the payroll department.

Question 115

Why the controller should prepare monthly bank reconciliations?

Answer 115

Why the controller should prepare monthly bank reconciliations?

Answer: To VERIFY that there were NO ERRORS made in recording receipts in the cash receipts journal.

Controller

As an overall verification of custody controls over cash, the controller should prepare monthly bank reconciliations

to verify that there were no errors made in recording receipts in the cash receipts journal.

Question 116

• The functions of

_________ the hiring of personnel,
payroll processing (recording)
and distributing payroll checks (custody)

should be segregated.

Answer 116

• The functions of

authorizing the hiring of personnel,
payroll processing (recording)
and distributing payroll checks (custody)

should be segregated.

Question 117

• The functions of

authorizing the hiring of personnel,
payroll processing (_________)
and distributing payroll checks (custody)

should be segregated.

Answer 117

• The functions of

authorizing the hiring of personnel,
payroll processing (recording)
and distributing payroll checks (custody)

should be segregated.

Question 118

• The functions of

authorizing the _______ of personnel,
payroll __________ (recording)
and distributing payroll checks (custody)

should be segregated.

Answer 118

• The functions of

authorizing the hiring of personnel,
payroll processing (recording)
and distributing payroll checks (custody)

should be segregated.

Question 119

• The functions of

authorizing the hiring of personnel,
_____ processing (recording)
and __________ payroll checks (custody)

should be segregated.

Answer 119

• The functions of

authorizing the hiring of personnel,
payroll processing (recording)
and distributing payroll checks (custody)

should be segregated.

Question 120

• The functions of

__________ the hiring of personnel,
payroll processing (_________)
and distributing payroll checks (custody)

should be segregated.

Answer 120

• The functions of

authorizing the hiring of personnel,
payroll processing (recording)
and distributing payroll checks (custody)

should be segregated.

Question 121

• The functions of

authorizing the hiring of personnel,
payroll processing (recording)
and distributing payroll checks (_______)

should be ___________.

Answer 121

• The functions of

authorizing the hiring of personnel,
payroll processing (recording)
and distributing payroll checks (custody)

should be segregated.

Question 122

• The __________ of

authorizing the hiring of personnel,
payroll processing (recording)
and distributing payroll checks (custody)

should be segregated.

Answer 122

• The functions of

authorizing the hiring of personnel,
payroll processing (recording)
and distributing payroll checks (custody)

should be segregated.

Question 123

• The functions of

___________ payroll rate changes
and payroll processing (recording)

should be segregated.

Answer 123

• The functions of

authorizing payroll rate changes
and payroll processing (recording)

should be segregated.

Question 124

• The functions of

authorizing payroll rate changes
and payroll processing (__________)

should be segregated.

Answer 124

• The functions of

authorizing payroll rate changes
and payroll processing (recording)

should be segregated.

Question 125

• The functions of

authorizing payroll ____ changes
and payroll processing (recording)

should be segregated.

Answer 125

• The functions of

authorizing payroll rate changes
and payroll processing (recording)

should be segregated.

Question 126

• The functions of

authorizing payroll rate changes
and _____ processing (recording)

should be segregated.

Answer 126

• The functions of

authorizing payroll rate changes
and payroll processing (recording)

should be segregated.

Question 127

• The functions of

_________ payroll rate changes
and payroll processing (________)

should be segregated.

Answer 127

• The functions of

authorizing payroll rate changes
and payroll processing (recording)

should be segregated.

Question 128

• The functions of

authorizing payroll rate _______
and payroll ________ (recording)

should be segregated.

Answer 128

• The functions of

authorizing payroll rate changes
and payroll processing (recording)

should be segregated.

Question 129

• The _________ of

authorizing payroll rate changes
and payroll processing (recording)

should be segregated.

Answer 129

• The functions of

authorizing payroll rate changes
and payroll processing (recording)

should be segregated.

Question 130

• Payroll _______ should be

prepared by the payroll department
and signed by the treasurer,

segregating recording and custody.

Answer 130

• Payroll checks should be

prepared by the payroll department
and signed by the treasurer,

segregating recording and custody.

Question 131

• Payroll checks should be

__________ by the payroll department
and signed by the treasurer,

segregating recording and custody.

Answer 131

• Payroll checks should be

prepared by the payroll department
and signed by the treasurer,

segregating recording and custody.

Question 132

• Payroll checks should be

prepared by the payroll department
and ______ by the treasurer,

segregating recording and custody.

Answer 132

• Payroll checks should be

prepared by the payroll department
and signed by the treasurer,

segregating recording and custody.

Question 133

• Payroll checks should be

prepared by the payroll department
and signed by the ________,

segregating recording and custody.

Answer 133

• Payroll checks should be

prepared by the payroll department
and signed by the treasurer,

segregating recording and custody.

Question 134

• Payroll checks should be

prepared by the _______ department
and signed by the treasurer,

segregating recording and custody.

Answer 134

• Payroll checks should be

prepared by the payroll department
and signed by the treasurer,

segregating recording and custody.

Question 135

• Payroll checks should be

prepared by the payroll department
and signed by the treasurer,

segregating _________ and custody.

Answer 135

• Payroll checks should be

prepared by the payroll department
and signed by the treasurer,

segregating recording and custody.

Question 136

• Payroll checks should be

prepared by the payroll department
and signed by the treasurer,

segregating recording and ________.

Answer 136

• Payroll checks should be

prepared by the payroll department
and signed by the treasurer,

segregating recording and custody.

Question 137

• ______ checks should be

prepared by the payroll department
and signed by the treasurer,

segregating recording and custody.

Answer 137

• Payroll checks should be

prepared by the payroll department
and signed by the treasurer,

segregating recording and custody.

Question 138

• Payroll checks should be

__________ by the payroll department
and ________ by the treasurer,

segregating recording and custody.

Answer 138

• Payroll checks should be

prepared by the payroll department
and signed by the treasurer,

segregating recording and custody.

Question 139

• Payroll checks should be

prepared by the _____ department
and signed by the ________ ,

segregating recording and custody.

Answer 139

• Payroll checks should be

prepared by the payroll department
and signed by the treasurer,

segregating recording and custody.

Question 140

• Payroll checks should be

prepared by the payroll department
and signed by the treasurer,

_________ recording and custody.

Answer 140

• Payroll checks should be

prepared by the payroll department
and signed by the treasurer,

segregating recording and custody.

Question 141

Service Organizations

Many companies use various types of service bureaus to assist them with the processing of routine transactions.

Answer 141

Service Organizations

Many companies use various types of service bureaus to assist them with the processing of routine transactions.

Question 142

Service Organizations

Many companies use various types of service bureaus to assist them with the processing of ro_____ transactions.

Answer 142

Service Organizations

Many companies use various types of service bureaus to assist them with the processing of routine transactions.

Question 143

Service Organizations

Many companies use various types of service bureaus to assist them with the processing of routine transactions.

Certain transactions, like pay____, may require a particular expertise and can often be processed more efficiently by an entity that specializes in that type of transaction.

Answer 143

Service Organizations

Many companies use various types of service bureaus to assist them with the processing of routine transactions.

Certain transactions, like payroll, may require a particular expertise and can often be processed more efficiently by an entity that specializes in that type of transaction.

Question 144

Service Organizations

Many companies use various types of service bureaus to assist them with the processing of routine transactions.

Certain transactions, like payroll, may require a particular expertise and can often be processed more efficiently by an entity that specializes in that type of transaction.

One of the most common types of service bureaus pro____es the payroll of various customer entities.

Answer 144

Service Organizations

Many companies use various types of service bureaus to assist them with the processing of routine transactions.

Certain transactions, like payroll, may require a particular expertise and can often be processed more efficiently by an entity that specializes in that type of transaction.

One of the most common types of service bureaus processes the payroll of various customer entities.

Question 145

Service Organizations

When an entity uses one of these service bureaus, also referred to as service organizations,

AU-C section 402,
Audit Considerations Relating to an Entity Using a Service Organization,

provides guidance as to the impact on an audit.

Answer 145

Service Organizations

When an entity uses one of these service bureaus, also referred to as service organizations,

AU-C section 402,
Audit Considerations Relating to an Entity Using a Service Organization,

provides guidance as to the impact on an audit.

Question 146

Service Organizations

When an entity uses one of these service bureaus, also referred to as service organizations,

AU-C section 402,
Audit Considerations Relating to an Entity Using a Service Organization,

provides guidance as to the impact on an a____.

Answer 146

Service Organizations

When an entity uses one of these service bureaus, also referred to as service organizations,

AU-C section 402,
Audit Considerations Relating to an Entity Using a Service Organization,

provides guidance as to the impact on an audit.

Question 147

Service Organizations

When an entity uses one of these service bureaus, also referred to as service organizations,

AU-C section 402,
Audit Considerations Relating to an Entity Using a Ser____ Organization,

provides guidance as to the impact on an audit.

Answer 147

Service Organizations

When an entity uses one of these service bureaus, also referred to as service organizations,

AU-C section 402,
Audit Considerations Relating to an Entity Using a Service Organization,

provides guidance as to the impact on an audit.

Question 148

Service Organizations

When an entity uses one of these service bureaus, also referred to as service organizations,

AU-C section 402,
Audit Considerations Relating to an Entity Using a Service Organization,

provides guidance as to the impact on an audit.

It defines a ser____ organization as

“an organization or segment of an organization that provides services to user entities that are relevant to those user entities’ internal control over financial reporting.”

Answer 148

Service Organizations

When an entity uses one of these service bureaus, also referred to as service organizations,

AU-C section 402,
Audit Considerations Relating to an Entity Using a Service Organization,

provides guidance as to the impact on an audit.

It defines a service organization as

“an organization or segment of an organization that provides services to user entities that are relevant to those user entities’ internal control over financial reporting.”

Question 149

Service Organizations

AU-C section 402,
Audit Considerations Relating to an Entity Using a Service Organization,

provides guidance as to the impact on an audit.

It defines a service organization as

“an organization or segment of an organization that provides services to user entities that are relevant to those user entities’ internal control over financial reporting.”

Answer 149

Service Organizations

AU-C section 402,
Audit Considerations Relating to an Entity Using a Service Organization,

provides guidance as to the impact on an audit.

It defines a service organization as

“an organization or segment of an organization that provides services to user entities that are relevant to those user entities’ internal control over financial reporting.”

Question 150

Service Organizations

AU-C section 402,
Audit Considerations Relating to an Entity Using a Service Organization,

provides guidance as to the im____ on an audit.

It defines a service organization as

“an organization or segment of an organization that provides services to user entities that are relevant to those user entities’ internal control over financial reporting.”

Answer 150

Service Organizations

AU-C section 402,
Audit Considerations Relating to an Entity Using a Service Organization,

provides guidance as to the impact on an audit.

It defines a service organization as

“an organization or segment of an organization that provides services to user entities that are relevant to those user entities’ internal control over financial reporting.”

Question 151

Service Organizations

AU-C section 402,
Audit Considerations Relating to an Entity Using a Service Organization,

defines a service organization as

“an organ______ or segment of an organization

that provides services to user entities that are relevant to those user

entities’ internal control over financial reporting.”

Answer 151

Service Organizations

AU-C section 402,
Audit Considerations Relating to an Entity Using a Service Organization,

defines a service organization as

“an organization or segment of an organization

that provides services to user entities that are relevant to those user

entities’ internal control over financial reporting.”

Question 152

Service Organizations

AU-C section 402,
Audit Considerations Relating to an Entity Using a Service Organization,

defines a service organization as

“an organization or segment of an organization

that provides ser____s to user entities that are relevant to those user

entities’ internal control over financial reporting.”

Answer 152

Service Organizations

AU-C section 402,
Audit Considerations Relating to an Entity Using a Service Organization,

defines a service organization as

“an organization or segment of an organization

that provides services to user entities that are relevant to those user

entities’ internal control over financial reporting.”

Question 153

Service Organizations

AU-C section 402,
Audit Considerations Relating to an Entity Using a Service Organization,

defines a service organization as

“an organization or segment of an organization

that provides services to user entities that are re______ to those user

entities’ internal control over financial reporting.”

Answer 153

Service Organizations

AU-C section 402,
Audit Considerations Relating to an Entity Using a Service Organization,

defines a service organization as

“an organization or segment of an organization

that provides services to user entities that are relevant to those user

entities’ internal control over financial reporting.”

Question 154

Service Organizations

AU-C section 402,
Audit Considerations Relating to an Entity Using a Service Organization,

defines a service organization as

“an organization or segment of an organization

that provides services to user entities that are relevant to those user

entities’ int_____ control over financial reporting.”

Answer 154

Service Organizations

AU-C section 402,
Audit Considerations Relating to an Entity Using a Service Organization,

defines a service organization as

“an organization or segment of an organization

that provides services to user entities that are relevant to those user

entities’ internal control over financial reporting.”

Question 155

Service Organizations

AU-C section 402,
Audit Considerations Relating to an Entity Using a Service Organization,

defines a service organization as

“an organization or segment of an organization

that provides services to user entities that are relevant to those user

entities’ internal con____ over financial reporting.”

Answer 155

Service Organizations

AU-C section 402,
Audit Considerations Relating to an Entity Using a Service Organization,

defines a service organization as

“an organization or segment of an organization

that provides services to user entities that are relevant to those user

entities’ internal control over financial reporting.”

Question 156

Service Organizations

AU-C section 402 defines a service organization as

“an organization or seg____ of an organization

that provides services to user entities that are relevant to those user

entities’ internal control over financial reporting.”

Answer 156

Service Organizations

AU-C section 402 defines a service organization as

“an organization or segment of an organization

that provides services to user entities that are relevant to those user

entities’ internal control over financial reporting.”

Question 157

Service Organizations

AU-C section 402 defines a service organization as

“an organization or segment of an organization

that provides services to us__ entities that are relevant to those user

entities’ internal control over financial reporting.”

Answer 157

Service Organizations

AU-C section 402 defines a service organization as

“an organization or segment of an organization

that provides services to user entities that are relevant to those user

entities’ internal control over financial reporting.”

Question 158

Service Organizations

AU-C section 402 defines a service organization as

“an organization or segment of an organization

that provides services to user entities that are relevant to those us__

entities’ internal control over financial reporting.”

Answer 158

Service Organizations

AU-C section 402 defines a service organization as

“an organization or segment of an organization

that provides services to user entities that are relevant to those user

entities’ internal control over financial reporting.”

Question 159

Service Organizations

AU-C section 402 defines a service organization as

“an organization or segment of an organization

that provides services to user entities that are relevant to those user

entities’ internal control over fin______ reporting.”

Answer 159

Service Organizations

AU-C section 402 defines a service organization as

“an organization or segment of an organization

that provides services to user entities that are relevant to those user

entities’ internal control over financial reporting.”

Question 160

Service Organizations

The objective of the “user auditor”
(the auditor of the client using the services of the service organization),

Answer 160

Service Organizations

The objective of the “user auditor”
(the auditor of the client using the services of the service organization),

Question 161

Service Organizations

The objective of the “user auditor”
(the auditor of the cli___ using the services of the service organization),

Answer 161

Service Organizations

The objective of the “user auditor”
(the auditor of the client using the services of the service organization),

Question 162

Service Organizations

The objective of the “user auditor”
(the auditor of the client u_ing the services of the service organization),

Answer 162

Service Organizations

The objective of the “user auditor”
(the auditor of the client using the services of the service organization),

Question 163

Service Organizations

The objective of the “user auditor”
(the auditor of the client using the ser____s of the service organization),

are to obtain an understanding of the nature and significance of the services provided,

Answer 163

Service Organizations

The objective of the “user auditor”
(the auditor of the client using the services of the service organization),

are to obtain an understanding of the nature and significance of the services provided,

Question 164

Service Organizations

The objective of the “user auditor”
(the auditor of the client using the services of the service organization),

are to obtain an un_______ding of the nature and significance of the services provided,

Answer 164

Service Organizations

The objective of the “user auditor”
(the auditor of the client using the services of the service organization),

are to obtain an understanding of the nature and significance of the services provided,

Question 165

Service Organizations

The objective of the “user auditor”
(the auditor of the client using the services of the service organization),

are to obtain an understanding of the na____ and significance of the services provided,

Answer 165

Service Organizations

The objective of the “user auditor”
(the auditor of the client using the services of the service organization),

are to obtain an understanding of the nature and significance of the services provided,

Question 166

Service Organizations

The objective of the “user auditor”
(the auditor of the client using the services of the service organization),

are to obtain an understanding of the nature and sign________ of the services provided,

Answer 166

Service Organizations

The objective of the “user auditor”
(the auditor of the client using the services of the service organization),

are to obtain an understanding of the nature and significance of the services provided,

Question 167

Service Organizations

The objective of the “user auditor”
(the auditor of the client using the services of the service organization),

are to obtain an understanding of the nature and significance of the services provided,

and ev_______ their effect on the user entity’s internal control

Answer 167

Service Organizations

The objective of the “user auditor”
(the auditor of the client using the services of the service organization),

are to obtain an understanding of the nature and significance of the services provided,

and evaluate their effect on the user entity’s internal control

Question 168

Service Organizations

The objective of the “user auditor”
(the auditor of the client using the services of the service organization),

are to obtain an understanding of the nature and significance of the services provided,

and evaluate their eff___ on the user entity’s internal control

Answer 168

Service Organizations

The objective of the “user auditor”
(the auditor of the client using the services of the service organization),

are to obtain an understanding of the nature and significance of the services provided,

and evaluate their effect on the user entity’s internal control

Question 169

Service Organizations

The objective of the “user auditor”
(the auditor of the client using the services of the service organization),

are to obtain an understanding of the nature and significance of the services provided,

and evaluate their effect on the us__ entity’s internal control

Answer 169

Service Organizations

The objective of the “user auditor”
(the auditor of the client using the services of the service organization),

are to obtain an understanding of the nature and significance of the services provided,

and evaluate their effect on the user entity’s internal control

Question 170

Service Organizations

The objective of the “user auditor”
(the auditor of the client using the services of the service organization),

are to obtain an understanding of the nature and significance of the services provided,

and evaluate their effect on the user entity’s internal con____

Answer 170

Service Organizations

The objective of the “user auditor”
(the auditor of the client using the services of the service organization),

are to obtain an understanding of the nature and significance of the services provided,

and evaluate their effect on the user entity’s internal control

Question 171

Service Organizations

The objective of the “user auditor”
(the auditor of the client using the services of the service organization),

are to obtain an understanding of the nature and significance of the services provided,

and evaluate their effect on the user entity’s internal control

in order to ass___ the risks of material misstatement,

Answer 171

Service Organizations

The objective of the “user auditor”
(the auditor of the client using the services of the service organization),

are to obtain an understanding of the nature and significance of the services provided,

and evaluate their effect on the user entity’s internal control

in order to assess the risks of material misstatement,

Question 172

Service Organizations

The objective of the “user auditor”
(the auditor of the client using the services of the service organization),

are to obtain an understanding of the nature and significance of the services provided,

and evaluate their effect on the user entity’s internal control

in order to assess the r___s of material misstatement,

Answer 172

Service Organizations

The objective of the “user auditor”
(the auditor of the client using the services of the service organization),

are to obtain an understanding of the nature and significance of the services provided,

and evaluate their effect on the user entity’s internal control

in order to assess the risks of material misstatement,

Question 173

Service Organizations

The objective of the “user auditor”
(the auditor of the client using the services of the service organization),

are to obtain an understanding of the nature and significance of the services provided,

and evaluate their effect on the user entity’s internal control

in order to assess the risks of material misstatement,
and to de____ and perform audit procedures responsive to those risks.

Answer 173

Service Organizations

The objective of the “user auditor”
(the auditor of the client using the services of the service organization),

are to obtain an understanding of the nature and significance of the services provided,

and evaluate their effect on the user entity’s internal control

in order to assess the risks of material misstatement,
and to design and perform audit procedures responsive to those risks.

Question 174

Service Organizations

The objective of the “user auditor”
(the auditor of the client using the services of the service organization),

are to obtain an understanding of the nature and significance of the services provided,

and evaluate their effect on the user entity’s internal control

in order to assess the risks of material misstatement,
and to design and per____ audit procedures responsive to those risks.

Answer 174

Service Organizations

The objective of the “user auditor”
(the auditor of the client using the services of the service organization),

are to obtain an understanding of the nature and significance of the services provided,

and evaluate their effect on the user entity’s internal control

in order to assess the risks of material misstatement,
and to design and perform audit procedures responsive to those risks.

Question 175

Service Organizations

The objective of the “user auditor”
(the auditor of the client using the services of the service organization),

are to obtain an understanding of the nature and significance of the services provided,

and evaluate their effect on the user entity’s internal control

in order to assess the risks of material misstatement,
and to design and perform au___ procedures responsive to those risks.

Answer 175

Service Organizations

The objective of the “user auditor”
(the auditor of the client using the services of the service organization),

are to obtain an understanding of the nature and significance of the services provided,

and evaluate their effect on the user entity’s internal control

in order to assess the risks of material misstatement,
and to design and perform audit procedures responsive to those risks.

Question 176

Service Organizations

The objective of the “user auditor”
(the auditor of the client using the services of the service organization),

are to obtain an understanding of the nature and significance of the services provided,

and evaluate their effect on the user entity’s internal control

in order to assess the risks of material misstatement,
and to design and perform audit procedures responsive to those r___s.

Answer 176

Service Organizations

The objective of the “user auditor”
(the auditor of the client using the services of the service organization),

are to obtain an understanding of the nature and significance of the services provided,

and evaluate their effect on the user entity’s internal control

in order to assess the risks of material misstatement,
and to design and perform audit procedures responsive to those risks.

Question 177

Service Organizations

The obj_____ of the “user auditor”
(the auditor of the client using the services of the service organization),

are to obtain an understanding of the nature and significance of the services provided,

and evaluate their effect on the user entity’s internal control

in order to assess the risks of material misstatement,
and to design and perform audit procedures responsive to those risks.

Answer 177

Service Organizations

The objective of the “user auditor”
(the auditor of the client using the services of the service organization),

are to obtain an understanding of the nature and significance of the services provided,

and evaluate their effect on the user entity’s internal control

in order to assess the risks of material misstatement,
and to design and perform audit procedures responsive to those risks.

Question 178

Service Organizations

Since the auditor is not in a position to exa____ the activities of such an outside organization,

Answer 178

Service Organizations

Since the auditor is not in a position to examine the activities of such an outside organization,

Question 179

Service Organizations

Since the auditor is not in a position to examine the activities of such an out____ organization,

Answer 179

Service Organizations

Since the auditor is not in a position to examine the activities of such an outside organization,

Question 180

Service Organizations

Since the auditor is not in a position to examine the activities of such an outside organization,

they will often need to r__y on reports of the auditor of the service organization itself,

referred to as the service auditor.

Answer 180

Service Organizations

Since the auditor is not in a position to examine the activities of such an outside organization,

they will often need to rely on reports of the auditor of the service organization itself,

referred to as the service auditor.

Question 181

Service Organizations

Since the auditor is not in a position to examine the activities of such an outside organization,

they will often need to rely on re____s of the auditor of the service organization itself,

referred to as the service auditor.

Answer 181

Service Organizations

Since the auditor is not in a position to examine the activities of such an outside organization,

they will often need to rely on reports of the auditor of the service organization itself,

referred to as the service auditor.

Question 182

Service Organizations

Since the auditor is not in a position to examine the activities of such an outside organization,

they will often need to rely on reports of the auditor of the se_____ organization itself,

referred to as the service auditor.

Answer 182

Service Organizations

Since the auditor is not in a position to examine the activities of such an outside organization,

they will often need to rely on reports of the auditor of the service organization itself,

referred to as the service auditor.

Question 183

Service Organizations

Since the auditor is not in a position to examine the activities of such an outside organization,

they will often need to rely on reports of the auditor of the service organization itself,

referred to as the ser____ auditor.

Answer 183

Service Organizations

Since the auditor is not in a position to examine the activities of such an outside organization,

they will often need to rely on reports of the auditor of the service organization itself,

referred to as the service auditor.

Question 184

Service Organizations

Since the auditor is not in a position to examine the activities of such an outside organization, they will often need to rely on reports of the auditor of the service organization itself, referred to as the service auditor.

The latter will usually issue a report on the inte____ control structure that the former may consider in assessing the internal control structure of the client.

Answer 184

Service Organizations

Since the auditor is not in a position to examine the activities of such an outside organization, they will often need to rely on reports of the auditor of the service organization itself, referred to as the service auditor.

The latter will usually issue a report on the internal control structure that the former may consider in assessing the internal control structure of the client.

Question 185

Service Organizations

Since the auditor is not in a position to examine the activities of such an outside organization, they will often need to rely on reports of the auditor of the service organization itself, referred to as the service auditor.

The latter will usually issue a report on the internal control stru_____

that the former may consider in assessing the internal control structure of the client.

Answer 185

Service Organizations

Since the auditor is not in a position to examine the activities of such an outside organization, they will often need to rely on reports of the auditor of the service organization itself, referred to as the service auditor.

The latter will usually issue a report on the internal control structure

that the former may consider in assessing the internal control structure of the client.

Question 186

Service Organizations

Since the auditor is not in a position to examine the activities of such an outside organization, they will often need to rely on reports of the auditor of the service organization itself, referred to as the service auditor.

The latter will usually issue a report on the internal control structure

that the former may consider in as___ing the internal control structure of the client.

Answer 186

Service Organizations

Since the auditor is not in a position to examine the activities of such an outside organization, they will often need to rely on reports of the auditor of the service organization itself, referred to as the service auditor.

The latter will usually issue a report on the internal control structure

that the former may consider in assessing the internal control structure of the client.

Question 187

Service Organizations

Since the auditor is not in a position to examine the activities of such an outside organization, they will often need to rely on reports of the auditor of the service organization itself, referred to as the service auditor.

The latter will usually issue a report on the internal control structure

that the former may consider in assessing the internal control st______ of the client.

Answer 187

Service Organizations

Since the auditor is not in a position to examine the activities of such an outside organization, they will often need to rely on reports of the auditor of the service organization itself, referred to as the service auditor.

The latter will usually issue a report on the internal control structure

that the former may consider in assessing the internal control structure of the client.

Question 188

Service Organizations

Since the auditor is not in a position to examine the activities of such an outside organization, they will often need to rely on reports of the auditor of the service organization itself, referred to as the service auditor.

The latter will usually issue a report on the internal control structure that the former may consider in assessing the internal control structure of the client.

The re____ on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

Answer 188

Service Organizations

Since the auditor is not in a position to examine the activities of such an outside organization, they will often need to rely on reports of the auditor of the service organization itself, referred to as the service auditor.

The latter will usually issue a report on the internal control structure that the former may consider in assessing the internal control structure of the client.

The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

Question 189

Service Organizations

The report on int_____ control structure by the service organization’s auditor

will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

Answer 189

Service Organizations

The report on internal control structure by the service organization’s auditor

will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

Question 190

Service Organizations

The report on internal control structure by the ser____ organization’s auditor

will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

Answer 190

Service Organizations

The report on internal control structure by the service organization’s auditor

will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

Question 191

Service Organizations

The report on internal control structure by the service organization’s au_____

will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

Answer 191

Service Organizations

The report on internal control structure by the service organization’s auditor

will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

Question 192

Service Organizations

The report on internal control structure by the service organization’s auditor

will desc____ the services of the organization that are covered by the report and a description of the auditor’s procedures.

Answer 192

Service Organizations

The report on internal control structure by the service organization’s auditor

will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

Question 193

Service Organizations

The report on internal control structure by the service organization’s auditor

will describe the ser____s of the organization that are covered by the report and a description of the auditor’s procedures.

Answer 193

Service Organizations

The report on internal control structure by the service organization’s auditor

will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

Question 194

Service Organizations

The report on internal control structure by the service organization’s auditor

will describe the services of the organization that are covered by the report and a desc______ of the auditor’s procedures.

Answer 194

Service Organizations

The report on internal control structure by the service organization’s auditor

will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

Question 195

Service Organizations

The report on internal control structure by the service organization’s auditor

will describe the services of the organization that are covered by the report and a description of the au_____’s procedures.

Answer 195

Service Organizations

The report on internal control structure by the service organization’s auditor

will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

Question 196

Service Organizations

The report on internal control structure by the service organization’s auditor

will describe the services of the organization that are covered by the report and a description of the auditor’s pro______s.

Answer 196

Service Organizations

The report on internal control structure by the service organization’s auditor

will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

Question 197

Service Organizations

The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

This will enable the au_____ of one of the service organization’s customers

to understand the overall impact of the service organization’s work on the internal control structure of the customer.

Answer 197

Service Organizations

The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

This will enable the auditor of one of the service organization’s customers

to understand the overall impact of the service organization’s work on the internal control structure of the customer.

Question 198

Service Organizations

The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

This will enable the auditor of one of the ser____ organization’s customers

to understand the overall impact of the service organization’s work on the internal control structure of the customer.

Answer 198

Service Organizations

The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

This will enable the auditor of one of the service organization’s customers

to understand the overall impact of the service organization’s work on the internal control structure of the customer.

Question 199

Service Organizations

The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

This will enable the auditor of one of the service organization’s customers

to understand the overall im____ of the service organization’s work on the internal control structure of the customer.

Answer 199

Service Organizations

The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

This will enable the auditor of one of the service organization’s customers

to understand the overall impact of the service organization’s work on the internal control structure of the customer.

Question 200

Service Organizations

The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

This will enable the auditor of one of the service organization’s customers

to understand the overall impact of the ser____ organization’s work on the internal control structure of the customer.

Answer 200

Service Organizations

The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

This will enable the auditor of one of the service organization’s customers

to understand the overall impact of the service organization’s work on the internal control structure of the customer.

Question 201

Service Organizations

The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

This will enable the auditor of one of the service organization’s customers

to understand the overall impact of the service organization’s work on the internal co_____ structure of the customer.

Answer 201

Service Organizations

The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

This will enable the auditor of one of the service organization’s customers

to understand the overall impact of the service organization’s work on the internal control structure of the customer.

Question 202

Service Organizations

The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

This will enable the auditor of one of the service organization’s customers to understand the overall impact of the service organization’s work on the internal control structure of the customer.

Before r___ing on such a report, the auditor should be satisfied as to the competence and independence of the service auditor,

Answer 202

Service Organizations

The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

This will enable the auditor of one of the service organization’s customers to understand the overall impact of the service organization’s work on the internal control structure of the customer.

Before relying on such a report, the auditor should be satisfied as to the competence and independence of the service auditor,

Question 203

Service Organizations

The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

This will enable the auditor of one of the service organization’s customers to understand the overall impact of the service organization’s work on the internal control structure of the customer.

Before relying on such a re____, the auditor should be satisfied as to the competence and independence of the service auditor,

Answer 203

Service Organizations

The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

This will enable the auditor of one of the service organization’s customers to understand the overall impact of the service organization’s work on the internal control structure of the customer.

Before relying on such a report, the auditor should be satisfied as to the competence and independence of the service auditor,

Question 204

Service Organizations

The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

This will enable the auditor of one of the service organization’s customers to understand the overall impact of the service organization’s work on the internal control structure of the customer.

Before relying on such a report, the auditor should be satisfied as to the com________ and independence of the service auditor,

Answer 204

Service Organizations

The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

This will enable the auditor of one of the service organization’s customers to understand the overall impact of the service organization’s work on the internal control structure of the customer.

Before relying on such a report, the auditor should be satisfied as to the competence and independence of the service auditor,

Question 205

Service Organizations

The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

This will enable the auditor of one of the service organization’s customers to understand the overall impact of the service organization’s work on the internal control structure of the customer.

Before relying on such a report, the auditor should be satisfied as to the competence and indep_______ of the service auditor,

Answer 205

Service Organizations

The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

This will enable the auditor of one of the service organization’s customers to understand the overall impact of the service organization’s work on the internal control structure of the customer.

Before relying on such a report, the auditor should be satisfied as to the competence and independence of the service auditor,

Question 206

Service Organizations

The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

This will enable the auditor of one of the service organization’s customers to understand the overall impact of the service organization’s work on the internal control structure of the customer.

Before relying on such a report, the auditor should be satisfied as to the competence and independence of the se_____ auditor,

Answer 206

Service Organizations

The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

This will enable the auditor of one of the service organization’s customers to understand the overall impact of the service organization’s work on the internal control structure of the customer.

Before relying on such a report, the auditor should be satisfied as to the competence and independence of the service auditor,

Question 207

Service Organizations

The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

This will enable the auditor of one of the service organization’s customers to understand the overall impact of the service organization’s work on the internal control structure of the customer.

Before relying on such a report, the auditor should be satisfied as to the competence and independence of the service au_____,

and the adequacy of the standards under which the report was issued.

Answer 207

Service Organizations

The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

This will enable the auditor of one of the service organization’s customers to understand the overall impact of the service organization’s work on the internal control structure of the customer.

Before relying on such a report, the auditor should be satisfied as to the competence and independence of the service auditor,

and the adequacy of the standards under which the report was issued.

Question 208

Service Organizations

The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

This will enable the auditor of one of the service organization’s customers to understand the overall impact of the service organization’s work on the internal control structure of the customer.

Before relying on such a report, the auditor should be satisfied as to the competence and independence of the service auditor,

and the ad_______y of the standards under which the report was issued.

Answer 208

Service Organizations

The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

This will enable the auditor of one of the service organization’s customers to understand the overall impact of the service organization’s work on the internal control structure of the customer.

Before relying on such a report, the auditor should be satisfied as to the competence and independence of the service auditor,

and the adequacy of the standards under which the report was issued.

Question 209

Service Organizations

The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

This will enable the auditor of one of the service organization’s customers to understand the overall impact of the service organization’s work on the internal control structure of the customer.

Before relying on such a report, the auditor should be satisfied as to the competence and independence of the service auditor,

and the adequacy of the stan____s under which the report was issued.

Answer 209

Service Organizations

The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.

This will enable the auditor of one of the service organization’s customers to understand the overall impact of the service organization’s work on the internal control structure of the customer.

Before relying on such a report, the auditor should be satisfied as to the competence and independence of the service auditor,

and the adequacy of the standards under which the report was issued.

Question 210

Service Organizations

The report of the service organization’s auditor

will assist the customer’s auditor

in gaining an understanding of the internal control structure of the customer,

to the extent it depends on the service organization’s work.

Answer 210

Service Organizations

The report of the service organization’s auditor

will assist the customer’s auditor

in gaining an understanding of the internal control structure of the customer,

to the extent it depends on the service organization’s work.

Question 211

Service Organizations

The re____ of the service organization’s auditor

will assist the customer’s auditor

Answer 211

Service Organizations

The report of the service organization’s auditor

will assist the customer’s auditor

Question 212

Service Organizations

The report of the ser____ organization’s auditor

will assist the customer’s auditor

Answer 212

Service Organizations

The report of the service organization’s auditor

will assist the customer’s auditor

Question 213

Service Organizations

The report of the service organization’s auditor

will assist the customer’s auditor

in gaining an und_______ing of the internal control structure of the customer,

Answer 213

Service Organizations

The report of the service organization’s auditor

will assist the customer’s auditor

in gaining an understanding of the internal control structure of the customer,

Question 214

Service Organizations

The report of the service organization’s auditor

will assist the customer’s auditor

in gaining an understanding of the internal control str______ of the customer,

to the extent it depends on the service organization’s work.

Answer 214

Service Organizations

The report of the service organization’s auditor

will assist the customer’s auditor

in gaining an understanding of the internal control structure of the customer,

to the extent it depends on the service organization’s work.

Question 215

Service Organizations

The report of the service organization’s auditor

will assist the customer’s auditor

in gaining an understanding of the internal control structure of the customer,

to the extent it de____s on the service organization’s work.

Answer 215

Service Organizations

The report of the service organization’s auditor

will assist the customer’s auditor

in gaining an understanding of the internal control structure of the customer,

to the extent it depends on the service organization’s work.

Question 216

Service Organizations

The report of the service organization’s auditor

will assist the customer’s auditor

in gaining an understanding of the internal control structure of the customer,

to the ex____ it depends on the service organization’s work.

Answer 216

Service Organizations

The report of the service organization’s auditor

will assist the customer’s auditor

in gaining an understanding of the internal control structure of the customer,

to the extent it depends on the service organization’s work.

Question 217

Service Organizations

The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer, to the extent it depends on the service organization’s work.

This will not, however, be considered a ba___ for determining the effectiveness of the customer’s internal control structure,

Answer 217

Service Organizations

The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer, to the extent it depends on the service organization’s work.

This will not, however, be considered a basis for determining the effectiveness of the customer’s internal control structure,

Question 218

Service Organizations

The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer, to the extent it depends on the service organization’s work.

This will not, however, be considered a basis for de______ing the effectiveness of the customer’s internal control structure,

Answer 218

Service Organizations

The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer, to the extent it depends on the service organization’s work.

This will not, however, be considered a basis for determining the effectiveness of the customer’s internal control structure,

Question 219

Service Organizations

The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer, to the extent it depends on the service organization’s work.

This will not, however, be considered a basis for determining the effe________ of the customer’s internal control structure,

Answer 219

Service Organizations

The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer, to the extent it depends on the service organization’s work.

This will not, however, be considered a basis for determining the effectiveness of the customer’s internal control structure,

Question 220

Service Organizations

The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer, to the extent it depends on the service organization’s work.

This will not, however, be considered a basis for determining the effectiveness of the customer’s inte_____ control structure,

so the use of the report is not a division of responsibility.

Answer 220

Service Organizations

The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer, to the extent it depends on the service organization’s work.

This will not, however, be considered a basis for determining the effectiveness of the customer’s internal control structure,

so the use of the report is not a division of responsibility.

Question 221

Service Organizations

The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer, to the extent it depends on the service organization’s work.

This will not, however, be considered a basis for determining the effectiveness of the customer’s internal control structure,

so the u__ of the report is not a division of responsibility.

Answer 221

Service Organizations

The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer, to the extent it depends on the service organization’s work.

This will not, however, be considered a basis for determining the effectiveness of the customer’s internal control structure,

so the use of the report is not a division of responsibility.

Question 222

Service Organizations

The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer, to the extent it depends on the service organization’s work.

This will not, however, be considered a basis for determining the effectiveness of the customer’s internal control structure,

so the use of the report is not a div____ of responsibility.

Answer 222

Service Organizations

The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer, to the extent it depends on the service organization’s work.

This will not, however, be considered a basis for determining the effectiveness of the customer’s internal control structure,

so the use of the report is not a division of responsibility.

Question 223

Service Organizations

The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer, to the extent it depends on the service organization’s work.

This will not, however, be considered a basis for determining the effectiveness of the customer’s internal control structure,

so the use of the report is NOT a division of res________y.

Answer 223

Service Organizations

The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer, to the extent it depends on the service organization’s work.

This will not, however, be considered a basis for determining the effectiveness of the customer’s internal control structure,

so the use of the report is NOT a division of responsibility.

Question 224

Service Organizations

The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer, to the extent it depends on the service organization’s work.

This will not, however, be considered a basis for determining the effectiveness of the customer’s internal control structure, so the use of the report is NOT a division of responsibility.

As a result, there must be NO REFERENCE to the auditor of the service organization in the audit report on the financial statements of the customer.

Answer 224

Service Organizations

The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer, to the extent it depends on the service organization’s work.

This will not, however, be considered a basis for determining the effectiveness of the customer’s internal control structure, so the use of the report is NOT a division of responsibility.

As a result, there must be NO REFERENCE to the auditor of the service organization in the audit report on the financial statements of the customer.

Question 225

Service Organizations

The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer, to the extent it depends on the service organization’s work.

This will not, however, be considered a basis for determining the effectiveness of the customer’s internal control structure, so the use of the report is NOT a division of responsibility.

As a result, there must be NO REFERENCE to the auditor of the ser____ organization in the audit report on the financial statements of the customer.

Answer 225

Service Organizations

The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer, to the extent it depends on the service organization’s work.

This will not, however, be considered a basis for determining the effectiveness of the customer’s internal control structure, so the use of the report is NOT a division of responsibility.

As a result, there must be NO REFERENCE to the auditor of the service organization in the audit report on the financial statements of the customer.

Question 226

Service Organizations

The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer, to the extent it depends on the service organization’s work.

This will not, however, be considered a basis for determining the effectiveness of the customer’s internal control structure, so the use of the report is NOT a division of responsibility.

As a result, there must be NO REFERENCE to the auditor of the service organization in the audit re____ on the financial statements of the customer.

Answer 226

Service Organizations

The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer, to the extent it depends on the service organization’s work.

This will not, however, be considered a basis for determining the effectiveness of the customer’s internal control structure, so the use of the report is NOT a division of responsibility.

As a result, there must be NO REFERENCE to the auditor of the service organization in the audit report on the financial statements of the customer.

Question 227

Service Organizations

The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer, to the extent it depends on the service organization’s work.

This will not, however, be considered a basis for determining the effectiveness of the customer’s internal control structure, so the use of the report is NOT a division of responsibility.

As a result, there must be NO REFERENCE to the auditor of the service organization in the audit report on the financial statements of the cus_____.

Answer 227

Service Organizations

The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer, to the extent it depends on the service organization’s work.

This will not, however, be considered a basis for determining the effectiveness of the customer’s internal control structure, so the use of the report is NOT a division of responsibility.

As a result, there must be NO REFERENCE to the auditor of the service organization in the audit report on the financial statements of the customer.

Question 228

Service Organizations

The re____ of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer, to the extent it depends on the service organization’s work.

This will not, however, be considered a basis for determining the effectiveness of the customer’s internal control structure, so the use of the report is NOT a division of responsibility.

As a result, there must be NO REFERENCE to the auditor of the service organization in the audit report on the financial statements of the customer.

Answer 228

Service Organizations

The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer, to the extent it depends on the service organization’s work.

This will not, however, be considered a basis for determining the effectiveness of the customer’s internal control structure, so the use of the report is NOT a division of responsibility.

As a result, there must be NO REFERENCE to the auditor of the service organization in the audit report on the financial statements of the customer.

Question 229

Service Organizations

Transactions processed by service organization (payroll processing) (AU-C 402/AT-C 320)

• TofC in place at client.
• TofC in place at service organization by another auditor.
• Get report from the other Auditor (service auditor).
• A service auditor should inquire of management about subsequent events.

Answer 229

Service Organizations

Transactions processed by service organization (payroll processing) (AU-C 402/AT-C 320)

• TofC in place at client.
• TofC in place at service organization by another auditor.
• Get report from the other Auditor (service auditor).
• A service auditor should inquire of management about subsequent events.

Question 230

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• TofC in place at client.
• TofC in place at service organization by another auditor.
• Get report from the other Auditor (service auditor).
• A service auditor should inquire of management about subsequent events.

Answer 230

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• TofC in place at client.
• TofC in place at service organization by another auditor.
• Get report from the other Auditor (service auditor).
• A service auditor should inquire of management about subsequent events.