Which of the following internal control tests would help to assess whether payroll transactions were properly classified?
A)Test clerical accuracy by footing the payroll journal.
B)Recompute net pay and gross pay.
C)Reconcile the disbursements in the payroll journal with the payroll bank statement.
D)Review time records and job records,tracing to labour distribution.

Question

Quizplus · Accepted Answer

Reviewing time records and job records and tracing them to labor distribution would help in assessing whether payroll transactions were properly classified, as it verifies whether employee hours and payroll costs were recorded and allocated to the appropriate department or job. The other options are helpful in testing other aspects of internal controls, such as clerical accuracy (A), completeness of payroll processing (B), and reconciling disbursements with bank statements (C).

Which of the Following Internal Control Tests Would Help to Assess