Question 1

For a given pay period, the complete listing of paychecks for the pay period is a:

Accepted Answer

Payroll register

Question 2

An integrated IT system of payroll and human resources may have extra risks above those of a manual system.Passwords and access logs are controls that should be used in these integrated systems to lessen the risk of:

Accepted Answer

Payroll data that does not reconcile to time cards.

Question 3

The purchase of fixed assets is likely to require different authorization processes than the purchase of inventory.Which of the following is not likely to be part of the authorization of fixed assets?

Accepted Answer

Approval of the depreciation schedule.

Question 4

Which of the following is not an advantage of fixed asset software systems when compared with spreadsheets?

Accepted Answer

Manual processes to link to the general ledger.

Question 5

Which of the following is not an independent check within payroll processes?

Accepted Answer

Paychecks are prepared on prenumbered checks.

Question 6

In meeting the control objective of safeguarding of assets, which department should be responsible for distribution of paychecks ad custody of unclaimed paychecks, respectively? Distribution of Custody of
Paychecks Unclaimed Paychecks

Accepted Answer

Treasurer Treasurer

Question 7

Which of the following questions would be least likely to appear on an internal control questionnaire regarding the initiation and execution of new property, plant, and equipment purchases?

Accepted Answer

Is access to the assets restricted and monitored?

Question 8

The term "ghost employee" means that:

Accepted Answer

Someone who does not work for the company receives a paycheck.

Question 9

A payroll voucher:

Accepted Answer

Authorizes the transfer of cash from a main operating account to a payroll account

Question 10

Which of the following statements about payroll and fixed asset processes is true?

Accepted Answer

Both have routine and non-routine processes

Question 11

Routine business transactions would include which of the following?

Accepted Answer

Purchase of merchandise inventory.

Question 12

Internal control problems would be likely to result if a company's payroll department supervisor was also responsible for:

Accepted Answer

Authorizing changes in employee pay rates.

Question 13

The purpose of segregating the duties of hiring personnel and distributing payroll checks is to separate the:

Accepted Answer

Authorization of transactions from the custody of related assets.

Question 14

This type of transaction is one that a business encounters on a regular, recurring basis.The volume of the transactions is so large that transactions and the related accounting activities become second nature to the employees responsible for handling them.Specific authorization for each of these transactions is not necessary.The type of transaction referred to is:

Accepted Answer

Routine transaction

Question 15

Which of the following procedures would be most useful in determining the effectiveness of a company's internal controls regarding the existence or occurrence of payroll transactions?

Accepted Answer

Observe the segregation of duties concerning personnel responsibilities and payroll disbursement.

Question 16

Which of the following is not a part of "adequate documents and records" for fixed assets?

Accepted Answer

Fixed asset journal

Question 17

For proper segregation of duties, the department that should authorize new employees for payroll would be:

Accepted Answer

Human resources.

Question 18

Which of the following reviews would be most likely to indicate that a company's property, plant, and equipment accounts are not understated?

Accepted Answer

Review of the company's repairs and maintenance expense accounts.

Question 19

A company's internal controls policies may mandate the distribution of paychecks by an independent paymaster in order to determine that:

Accepted Answer

Employees included in the period's payroll register actually exist and are currently employed.

Question 20

Which of the following departments or positions most likely would approve changes in pay rates and deductions from employee salaries?

Accepted Answer

Personnel

Quiz 10: Expenditures Processes and Controls Payroll and Fixed Assets