payroll

Question 1

income statement elements are typically tested with

Answer 1

analytical procedures.

test of details will be performed only when the analytical procedures indicate a material misstatement and a more detailed investigation is neccessary

Question 2

recall 5 assertions related to classes of transactions

Answer 2

occurence
completeness
cuttoff
accuracy
classification

Question 3

occurence and accuracy

Answer 3

examine personnel records on a test basis

trace transaction from payroll register to gen ledger to bank statement

recalculate selected entries on payroll register

Question 4

completeness

Answer 4

review time cards

use analytical procedures for reasonableness for year end accruels

Question 5

cuttoff is tested when

Answer 5

occurence and completeness are tested

Question 6

classification

Answer 6

verify payroll deductions and taxes

trace cash disbursements for withholdings to appropriate agencies

review outside reports related to pension and post retirement beneifits