Deck 12: Transaction Cycle The HR Management and Payroll Cycle

Question 1

Which of the following regarding leave entitlements is true?

A)Activities involving recording employee leave entitlements affect the individual employee only.
B)Employee leave entitlements are not represented on a company balance sheet.
C)Incorrect calculation and disclosure of employee leave related liabilities can have serious consequences.
D)All of the options are correct.

Answer 1

C

Question 2

A sound,well controlled HR management and payroll cycle can provide a competitive advantage by:

A)Controlling costs
B)Providing superior employees at lower levels within the organisation
C)Providing superior employees at higher levels within the organisation
D)All of the options are correct.

Answer 2

D

Question 3

The HR management and payroll cycle ends when:

A)an employee expresses his/her intent to leave the organisation
B)the organisation is out of business
C)the employment contract of an employee comes to an end
D)All of the options are correct.

Answer 3

C

Question 4

In the HR management phase of the HR management and payroll cycle:

A)The HR manager ensures that pay rates and changes to pay rates are recorded for each employee.
B)The HR manager ensures that every employee should undergo continuous professional development.
C)The HR manager ensures that every employee is happy.
D)The HR manager ensures that no employee should work overtime when unnecessary.

Question 5

Which of the following statements regarding human resources staff is true?

A)Human resources staff are not responsible for the quality of the staff employed by the organisation
B)Human resources staff are partially responsible for the quality of the staff employed by the organisation.
C)Human resources staff are fully responsible for the quality of the staff employed by the organisation.
D)Human resources staff and the quality of the staff employed by the organisation are irrelevant.

Question 6

Which of the following is NOT a source document in the HR management and payroll cycle?

A)A job application
B)A weekly timesheet
C)A labour budget for the next 12 months
D)An employee performance review

Question 7

A software development company has several employees working from home.Which of the following would be the best way of recording the hours they have worked each week?

A)Electronic submission by completing an on-screen form and attaching an electronic signature.
B)A bar code reader that is swiped when the employee arrives at/departs from the office
C)Physical clocking on card that must be inserted in a time clock machine at the office,at the start and end of each shift
D)Telephone call from the manager each week

Question 8

The payroll function adds to organisational success by: (i)ensuring that employees are paid in a timely and accurate manner (ii)ensuring high morale and confidence in staff (iii)complying with all legislative requirements (iv)controlling salary and wage costs.

A)(i)only
B)(i)(iv)only
C)(i)(iii)only
D)(i)(ii)(iii)(iv)

Question 9

The objective of the human resources function is to:

A)effectively efficiently and objectively recruit suitable staff
B)manage regular and effective performance reviews during their period of employment
C)beneficially arrange their exit from the company at the end of their employment contract
D)All of the options are correct.

Question 10

Which of the following systems cannot be applied to the HR management and payroll cycle?

A)CRM
B)ERP
C)CAD
D)ESS-CRM

Question 11

Which of the following linkages between the various cycles are made easier by an ERP system?

A)The funds needed to cover the payroll after a proposed pay increase is calculated
B)A recruitment schedule is drawn up to match the requirements of the production plan
C)A salesman is paid commission for sales made each week
D)All of the above

Question 12

The primary responsibility of the payroll function is to ensure that:

A)Human capital is paid for and is in high morale.
B)Human capital is paid for accurately and on time.
C)Human capital is neither overpaid nor underpaid.
D)All of the options are correct.

Question 13

All recruiting and retention activities should be guided by:

A)organisation vision
B)organisation strategy
C)organisation culture
D)All of the options are correct.

Question 14

Which of the following is an activity in the HR management and payroll cycle?

A)Recording hours spent on a project
B)Authorisation of changes in personnel details
C)Controlling access to the list of authorised suppliers
D)Calculating variances between labour used and budget

Question 15

The HR management and payroll cycle commences when:

A)~ the organisation identifies a requirement to recruit a new employee
B)a new employee joins the organisation
C)a new employee is paid for the first time in the organisation
D)None of the options are correct.

Question 16

An inability to retain existing staff members:

A)Allows for generational change to take place
B)Provides opportunities for existing staff members
C)Leads to expensive and disruptive staff replacements
D)All of the options are correct

Question 17

The inability to retain existing staff members leads to: (i)limitation of the skill sets available to the organisation (ii)expensive staff replacements (iii)disruptive staff replacements (iv)severe legal consequences.

A)(i)(iv)only
B)(i)(ii)only
C)(ii)(iii)only
D)(i)(ii)(iii)(iv)

Question 18

The HR management and payroll cycle must be aligned primarily with:

A)organisation vision
B)organisation strategy
C)organisation culture
D)All of the options are correct.

Question 19

When making electronic payments to employees,an organisation must consider:

A)Timing implications.
B)Cash flow implications.
C)Security implications.
D)All of the options are correct.

Question 20

When an employment contract comes to an end:

A)~ the employee's exit from the company must be carefully managed
B)the employee's exit from the company need not be managed
C)the deduction of taxes is no longer the organisation's concern
D)the forwarding of superannuation is no longer the organisation's concern

Question 21

Which of the following activities is not part of the process of updating payroll data?

A)prepare cash disbursement
B)distribute pay slips
C)distribute leave forms
D)prepare accounts payable

Question 22

Which of the following is NOT a strategic level policy decision in the HR management and payroll cycle?

A)creation of a new position
B)whether to fill an existing vacancy
C)employee payment policies and procedures
D)calculation of payroll amounts

Question 23

Which of the following is not associated with the recording of employee work time?

A)RFID
B)Time clock scanner
C)Biometric scanner
D)None of the options are correct.

Question 24

Which of the following descriptions of the HR management and payroll cycle is NOT true?

A)All decision making in the cycle should involve both deep and broad analysis prior to a decision being taken.
B)Operational decisions are typically made by senior staff and relate only to a specific instance of the cycle.
C)To be effective strategic level process business decisions made in the cycle should be congruent with the overarching business strategy.
D)To develop employee payment policies and procedures,one needs knowledge of applicable employee legislation,industry standards and legal requirements.

Question 25

Common controls of the risk of advertising inappropriate/incorrect positions do not include:

A)Matching vacancies to existing position descriptions.
B)Including relevant key selection criteria on all position descriptions.
C)Authorisation of position advertisement by senior operational manager.
D)One for one matching of open positions closed and employee records generated.

Question 26

Which of the following external entities do not interact with the HR management and payroll cycle?

A)Tax agencies
B)Customers
C)Employees
D)Banks

Question 27

Position description data is generally created by:

A)High level employees within the HR function,working in tandem with operational managers and supervisors.
B)Operational managers and supervisors only.
C)High level employees within the HR function only.
D)Any employee from the HR function,working in tandem with operational managers and supervisors.

Question 28

Which of the following regarding the salary or wage of an employee is true?

A)The salary or wage of an employee is internally determined.
B)The Salary or wage of an employee is externally determined.
C)The Salary or wage of an employee is jointly determined by external and internal factors.
D)None of the options are correct.

Question 29

Which of the following is not involved in the payroll preparation process?

A)Tax agencies
B)Revenue cycle
C)Ordinary employees
D)Production cycle

Question 30

To alter employment status of an employee,a HR clerk does not need to source information from:

A)The employee's supervisor
B)The employee himself/herself
C)The employee's performance review
D)The employee employment master record

Question 31

The employee termination process is not directly linked with:

A)The operational department.
B)The leave entitlements database.
C)The revenue cycle.
D)The performance management process.

Question 32

Which of the following is not a typical risk encountered during employee induction?

A)Successful applicant not contacted in a timely manner.
B)New employee record not generated,or generated inaccurately.
C)Inability to attract suitable applicants.
D)Fictitious employee record created

Question 33

Which of the following is not involved in employee recruitment?

A)Position description database.
B)Employees master database.
C)Open positions database.
D)Payroll database.

Question 34

The two key processes in performance management are:

A)Performance assessment and performance adjustments.
B)Performance improvement and performance adjustments.
C)Performance assessment and performance improvement.
D)Performance monitoring and performance improvement.

Question 35

Identifying and dealing with underperforming staff do NOT necessarily require:

A)consideration of the employees' history with the organisation
B)a clear understanding of targets and goals appropriate for the employee
C)documented evidence of any past performance concerns
D)knowledge of applicable employee legislation

Question 36

An employee record is ideally initially generated by a human resources employee who:

A)Has responsibility for identifying and authorising new employees and is involved in payroll cycle activities.
B)Does not have the responsibility for identifying and authorising new employees and is not involved in any payroll cycle activities.
C)Has the responsibility for identifying and authorising new employees but is not involved in any payroll cycle activities.
D)None of the options are correct.

Question 37

Which of the following cannot minimise the risk of paying a fictitious employee?

A)Asking someone in HR management who is not involved with the pay calculations or authorising any pay change details to distribute the pay slips.
B)Setting up the role of a paymaster and let the paymaster distribute the pay slips.
C)Ensuring that pay slips are physically handed to employees.
D)Asking supervisors of the employees to distribute pay slips.

Question 38

Key selection criteria:

A)Are the same as a position description.
B)Form part of a position description.
C)Have no connection with a position description.
D)None of the options are correct.

Question 39

Which of the following is not involved in the payroll process?

A)Payslips database.
B)Position description database.
C)Leave entitlements database.
D)Tax scales database.

Question 40

Which of the following is normally not included in a payslip?

A)Gross wages based on either their salary contract or hours worked multiplied by their wage rate.
B)Deductions taken from gross wages on behalf of external bodies such as the taxation department and superannuation funds.
C)Balances due for various forms of leave.
D)Financial entitlements when employees exit the organisation.

Question 41

What are the typical risks encountered during performance review and what are the possible control measures?

Question 42

What are the basic functions of the human resource phase in the HR management and payroll cycle and what is its objective? Explain.

Question 43

Which of the following can be used as a KPI to measure the objective of "Accurately calculate and disburse salary and wage payments"?

A)Volume and value of employee overpayments detected.
B)Volume and value of employee underpayments detected.
C)Salary and wage expenditure variances.
D)All of the options are correct.

Question 44

Briefly explain how a performance review is done and the persons involved.

Question 45

Give two examples of operation level decisions in the HR management and payroll cycle.Explain.

Question 46

Which of the following is not a risk that occurs during payroll disbursement?

A)Leave balances incorrectly recorded
B)Non/slow payment to employees and third parties.
C)Inaccurate payments to employees and third parties.
D)Theft of valid employee payments.

Question 47

Which of the following is less likely to be a KPI that can be used to measure the objective of "Manage regular and effective employee performance reviews"?

A)The amount of time used in each performance review meeting.
B)Frequency of reviews conducted.
C)Under performance detection success rate.
D)Over performance detection success rate.

Question 48

Why employee exit should be managed carefully?

Question 49

What are the basic functions of the payroll phase in the HR management and payroll cycle and what is its objective? Explain.

Question 50

Give three KPI that can be used to measure the objective of "Effectively,efficiently and objectively recruit suitable staff".

Question 51

Common controls of the risk paying fictitious employees do not include:

A)Regularly reconcile payments made to payroll records.
B)Independent authorisation required to create new employee record.
C)One for one checking of employee termination notices against current employee pay records
D)Segregation of duties

Question 52

When are data about a new employee created and who creates them?

Question 53

Common controls of the risk of incorrect salary and wage calculations do not include:

A)Use of batch and hash totals.
B)Cash disbursements signed for by recipient.
C)Reporting salary and wage variances to budgets and forecasts.
D)Distribution of detailed payslips to employees.

Question 54

Which of the following is not directly involved in the calculation of payroll?

A)Tax scales database.
B)Leave entitlements database.
C)Payslips database.
D)Employee master database.

Question 55

Which of the following is not a good KPI for measuring the HR management and payroll cycle performance?

A)Dollar cash losses due to fraud in the payroll cycle.
B)Dollar underpayments of wages to employees.
C)Number of employee complaints.
D)Account management fee of the imprest account.

Question 56

What are the risks associated with employee induction and what are the possible control measures?

Question 57

Which of the following is less likely to be a KPI that can be used to measure the objective of "Beneficially control and manage employee exits".

A)Number of exit interviews conducted.
B)Level of compliance with exit procedure policies and procedures.
C)Level of compliance with legal requirements.
D)Volume and value of exit fees recovered from employees.

Question 58

Which of the following is not directly involved in the calculation of payroll?

A)Production cycle.
B)Revenue cycle.
C)Operational department.
D)Tax agencies.

Question 59

Strategic level decisions in the HR management and payroll cycle includes the creation of policies for various areas.Give two examples of such areas with brief explanation.

Question 60

Which of the following are the KPIs that can be used to measure the objective of "Effectively,efficiently and objectively recruit suitable staff"? (i)Recruitment cycle time - advertisement to appointment (ii)Average employment duration - appointment to termination (iii)Number of applicants for positions advertised

A)(i)(ii)only
B)(i)(iii)only
C)(ii)(iii)only
D)(i)(ii)(iii)