Test 4

Question 1

Describe the proper control for Inaccurate Time and Attendance Data (HR 1)

Answer 1

Biometric authentication

Question 2

Describe the proper control for Inaccurate Updating of Payroll Master Data (HR 2)

Answer 2

Data processing integrity controls

Question 3

Describe the proper control for Theft or Fraudulent Distribution of Paychecks (HR 3)

Answer 3

Restriction of physical access to a blank payroll checks and check signature machine

Question 4

Describe the proper control for Hiring Larcenous Employees (HR 4)

Answer 4

Criminal background check for all applicants for accounting/finance related positions

Question 5

Describe the proper control for Inaccurate Payments (HR 5)

Answer 5

Supervisory review of reports

Question 6

Describe the proper control for Inaccurate Updating of G/L (GL 1)

Answer 6

Audit trail creation and review

Question 7

Describe the proper control for Inaccurate Adjusting Entries (GL 2)

Answer 7

Spreadsheet error protection controls

Question 8

Describe the proper control for Inaccurate Financial Statements (GL 3)

Answer 8

Training and experience in applying IFRS and XBRL

Question 9

Describe the proper control for Fraudelent Financial Reporting (GL 4)

Answer 9

Audits (internal and external)

Question 10

Describe the proper control for Poorly Designed Reports and Graphs (GL 5)

Answer 10

Responsibility Accounting