Control Payroll Flashcards
Payroll Department
Assembles Payroll info
Occurrence is indicated by
Proper segregation of duties
Manufactoring overhead recordance
direct daily labor is not a part of MOH
who authorizes pay rate
human resource department
Treasury function is similar to
custodian
construction risk
in house high because no seperate invoice is generated so you don’t really know if prices are correct
completeness
accounting records to outside documentation
rights
ownership issues
periodic to perpetual records
insurance accuracy of inventory on hand to the financial records
perpetual inventory
updates inventory count every time a sale has been made
continuous record of actual inventory
Board of Directors never
Reviews or authorizes transactions
Safeguarding
gives responsibility or authorization to two or more key employees
obsolete inventory control requirement
determined by an authorized employee not involved with asset custody or recordance
Disposal of fully depreciated assets
control should never dispose of fully depreciated assets because they may still be providing value
misclassification of assets as expenses can be identified by
budgetary comparisons , analytical procedures
confirmations
never used to test controls
controls assurance
TRACE
documents in question to records
necessary step in relying on IC
Inquire followed by a physical test
Significant Deficiency
Material weakness
material misstatement
combination of significant deficiencies
payroll register info taken from
clock time cards
clock time cards info taken from
job tickets
low audit risk
analytical procedures alone can be effective
commission payable goes with what testing
SALES CUTTOFF
