Control Payroll

Question 1

Payroll Department

Answer 1

Assembles Payroll info

Question 2

Occurrence is indicated by

Answer 2

Proper segregation of duties

Question 3

Manufactoring overhead recordance

Answer 3

direct daily labor is not a part of MOH

Question 4

who authorizes pay rate

Answer 4

human resource department

Question 5

Treasury function is similar to

Answer 5

custodian

Question 6

construction risk

Answer 6

in house high because no seperate invoice is generated so you don’t really know if prices are correct

Question 7

completeness

Answer 7

accounting records to outside documentation

Question 8

rights

Answer 8

ownership issues

Question 9

periodic to perpetual records

Answer 9

insurance accuracy of inventory on hand to the financial records

Question 10

perpetual inventory

Answer 10

updates inventory count every time a sale has been made

continuous record of actual inventory

Question 11

Board of Directors never

Answer 11

Reviews or authorizes transactions

Question 12

Safeguarding

Answer 12

gives responsibility or authorization to two or more key employees

Question 13

obsolete inventory control requirement

Answer 13

determined by an authorized employee not involved with asset custody or recordance

Question 14

Disposal of fully depreciated assets

Answer 14

control should never dispose of fully depreciated assets because they may still be providing value

Question 15

misclassification of assets as expenses can be identified by

Answer 15

budgetary comparisons , analytical procedures

Question 16

confirmations

Answer 16

never used to test controls

Question 17

controls assurance

Answer 17

TRACE

documents in question to records

Question 18

necessary step in relying on IC

Answer 18

Inquire followed by a physical test

Question 19

Significant Deficiency

Material weakness

Answer 19

material misstatement

combination of significant deficiencies

Question 20

payroll register info taken from

Answer 20

clock time cards

Question 21

clock time cards info taken from

Answer 21

job tickets

Question 22

low audit risk

Answer 22

analytical procedures alone can be effective

Question 23

commission payable goes with what testing

Answer 23

SALES CUTTOFF