Question 1

The following ten items describe positions or departments related to procurement and human resource business processes.Listed below are ten positions or departments:
A.Cash disbursements
B.Paymaster
C.Purchasing
D.Receiving
E.Accounts Payable
F.Payroll
G.Personnel
H.Timekeeping
I.Internal audit
J.Stores
Required: Next to each number,write the letter of the answer representing the department or position described.
________ 1.Has authority to request the purchase of needed items
________ 2.Prepares a control total of checks paid and sends it to general ledger
________ 3.Reconciles bank statements
________ 4.Performs final matching of documents to authorize payments
________ 5.Computes gross pay,deductions,and net pay
________ 6.Counts and inspects incoming goods
________ 7.Has responsibility for distributing employee payroll checks
________ 8.Maintains clock cards and reconciles them to job time summary sheets
________ 9.Authorizes new employees and their pay rates and payroll deductions
________ 10.Frequently uses request-for-quotation forms to obtain bids

Accepted Answer

The answer of The following ten items describe positions or...

Question 2

Presented below is a list of terms relating to accounting information systems,followed by definitions of those terms.
Required: Match the letter next to each definition with the appropriate term.Each answer will be used only once.
________ 1.Purchase requisition
________ 2.Procurement
________ 3.Approved vendor list
________ 4.Blind count
________ 5.Purchase order
________ 6.Attribute rating
________ 7.Request for quotation
________ 8.Receiving report
________ 9.Invoice verification
________ 10.Voucher package
A.Counters in receiving do not have access to quantities shown on purchase orders.
B.Document used to request a purchase
C.A summary of vendors approved for use by the purchasing function
D.A collection of documents that are reviewed and approved to authorize a transaction
E.An approach to vendor selection which identifies,lists,and evaluates several different aspects concerning a vendor
F.Prepared to document the receipt of deliveries from vendors
G.The document issued to a vendor to initiate a purchase
H.The business process of selecting a source,ordering,and acquiring goods or services
I.The review of purchasing documentation prior to authorizing payment to vendors
J.Documents used to request competitive bids from vendors

Accepted Answer

The answer of Presented below is a list of terms...

Question 3

Discuss the employer's requirements for FICA tax,including the procedures for deposit,penalties for failure to deposit,the form used to report the tax,and the due dates of the form.

Accepted Answer

The answer of Discuss the employer's requirements for FICA tax,including...

Question 4

The following is a description of the payroll procedures for Cherokee Custom Crafters,a small company that customizes vans and RVs according to customers' specifications:
The payroll department prepares a time card for each employee on the payroll every Monday and leaves the time cards in a box near the entrance to the factory.Workers fill in their time daily.
A payroll clerk picks up the time cards the following Monday when dropping off the new time cards.The payroll clerk then inputs the number of hours for each employee into the computer.
The payroll application calculates gross pay,deductions,and net pay,and prints a payroll register.
Payroll checks are prepared manually by the payroll clerk and signed by the chief accountant,who takes them to the factory supervisor.The factory supervisor distributes the checks.The chief accountant prepares the monthly reconciliation of the payroll bank accounts.
Required: List five recommendations for improving Cherokee Custom Crafters' internal controls over its payroll function.

Accepted Answer

The answer of The following is a description of the...

Question 5

Form 941 is filed to report federal income and social security taxes withheld from employees.It is filed
A) weekly.
B) monthly.
C) quarterly.
D) annually.

Accepted Answer

Form 941 is filed quarterly, meaning four times a year, to report federal income and social security taxes withheld from employees.

Question 6

The department responsible for the actual computation and preparation of payroll is the
A) accounts payable department.
B) payroll department.
C) personnel department.
D) production department (for factory workers).

Accepted Answer

The payroll department is responsible for the computation and preparation of payroll, including calculating hours worked, deductions, taxes, and issuing employee paychecks. The other options are not directly involved in the payroll process.

Question 7

When goods arrive at a company's location,what are the ways a receiving report (goods receipt document)can be prepared in SAP ERP's procurement business process?

Accepted Answer

The answer of When goods arrive at a company's location,what...

Question 8

Below are the documents commonly encountered in a procurement business process:
a.Purchase requisition
b.Purchase order
c.Receiving report
d.Payment voucher
Required: For each document,(1)state where it originated,and (2)give the entity or entities (e.g.,other departments or parties)which would most likely receive a copy of the document or that should access it in a database.

Accepted Answer

The answer of Below are the documents commonly encountered in...

Question 9

Which one of the following represents a weakness in internal control regarding the human resources area?
A) The payroll staff distributes paychecks to employees in other departments.
B) The payroll department supervisor makes decisions regarding the hiring of payroll department employees.
C) The supervisors of all departments are responsible for initiating requests for salary increases for their subordinate employees.
D) Supervisors are responsible for reviewing and approving time reports of their subordinate employees.

Accepted Answer

The payroll staff distributing paychecks to employees in other departments is a weakness as it increases the risk of unauthorized access to paychecks, which may lead to fraudulent activities. Ideally, paychecks should be distributed by the employees' respective supervisors or HR personnel to ensure proper control and security. Option B, C, and D are regular responsibilities assigned to supervisors or HR departments and do not represent weaknesses in internal control.

Question 10

Various payroll forms and reports must be submitted to federal and state entities by certain deadlines.The federal form which is not due on or before January 31 of each year is the
A) Form W-2.
B) Form W-3.
C) Form 941.
D) Form 1099-MISC.

Accepted Answer

The answer of Various payroll forms and reports must be...

Question 11

Explain the difference in a voucher system between recording invoices when they are approved for payment versus recording invoices when paid.

Accepted Answer

The answer of Explain the difference in a voucher system...

Question 12

Employers engaged in interstate commerce are required by law to pay overtime at a minimum of one and one-half times the regular rate for hours worked in excess of 40 per week.The law that requires this is called the
A) Fair Labor Standards Act (FLSA).
B) Federal Unemployment Tax Act (FUTA).
C) Federal Income Tax Act (FITA).
D) Federal Insurance Contributions Act (FICA).

Accepted Answer

The Fair Labor Standards Act (FLSA) is the federal law that establishes minimum wage, overtime pay, recordkeeping, and child labor standards for employees in the private sector and in federal, state, and local governments. This law requires employers engaged in interstate commerce to pay overtime at a minimum of one and one-half times the regular rate for hours worked in excess of 40 per week.

Question 13

The federal tax which requires that employees and employers contribute equally for old age,survivors',disability,and hospital insurance benefits is
A) federal unemployment tax.
B) federal income tax.
C) workers' compensation.
D) social security tax.

Accepted Answer

The federal tax which requires that employees and employers contribute equally for old age, survivors', disability, and hospital insurance benefits is the social security tax.

Question 14

Discuss why the buyer-vendor relationship is the most critical point of control in the procurement business process,and describe two procedures that can improve control in the buyer-vendor relationship.

Accepted Answer

The answer of Discuss why the buyer-vendor relationship is the...

Question 15

Name four federal acts or types of taxes that relate to payroll,and briefly discuss the main provision of each.

Accepted Answer

The answer of Name four federal acts or types of...

Question 16

Which of the following should not have access to signed paychecks?
A) Payroll and personnel
B) Cash disbursement, personnel, and timekeeping
C) Personnel, payroll, and timekeeping
D) Cash disbursement, personnel, and bookkeeping

Accepted Answer

Personnel, payroll, and timekeeping should not have access to signed paychecks to prevent fraud and ensure proper segregation of duties.

Question 17

Below are three procedures that violate common internal control guidelines over the purchasing function:
a.The company has never established any written policies regarding conflicts of interest for its buyers.
b.The company's buyers are allowed to select suppliers without submitting a list of bidders for review.
c.The same buyers who ask suppliers to submit requests for quotations receive the suppliers' bids directly from the mailroom.
Required: For each procedure,state one problem that could arise because of the failure to follow common guidelines in the purchasing function.

Accepted Answer

The answer of Below are three procedures that violate common...

Question 18

The following ten paragraphs describe control weaknesses in customer order and account management business processes.Listed below are ten controls that may help regulate the weaknesses:
A.Separation of payroll and personnel departments
B.Independent paymaster to distribute paychecks
C.Imprest payroll bank account
D.Vendor selected by purchasing department
E.Timekeeping department reconciles time cards to job time summaries
F.Requisition form prepared by requestor
G.Receiving report signed by stores
H.Vendor list approved independent of purchasing
I.Purchase order copy sent to accounts payable
J.Receiving report copy sent to accounts payable
Required: In the blank next to each number,list one capital letter representing the best control to address the system weakness.You will use each letter only once.
1.________ Rattlesnake Wire Company's purchasing manager selected his brother-in-law as a vendor and received a kickback for providing the business.
2.________ Blazing Saddles Corporation ordered goods that receiving personnel stole.Receiving prepared a receiving report and sent it to accounts payable.The company unknowingly paid for the stolen goods.
3.________ The production manager at Ghost Manufacturing Company told the payroll department he had hired a new employee.On payday,the paymaster could not find the employee and upon investigation,found that the employee did not exist.
4.________ Price Company's purchasing department ordered goods requested by the maintenance department by phone.When the goods arrived,the maintenance department claimed that the goods were of such poor quality they could not be used.
5.________ Connecticut Yankee Manufacturing Company ordered goods that were never received.The company,as a matter of standard policy,paid the invoice.
6.________ Southern Star Manufacturing Company's payroll department routinely distributed paychecks on payday.The payroll supervisor suddenly quit her job.On the next payday,the payroll department could not find employees to claim two paychecks.
7.________ Panhandle Products Company cannot easily identify vendors,and consistently selects vendors whose goods are overpriced and whose delivery schedules are too slow for Panhandle's needs.
8.________ Lone Star Production Company received goods that were never ordered.The company paid the invoice.
9.________ Half Moon Manufacturing Company's production manager is unsure that the second shift employees are working all hours reported on the job time tickets.
10.________ The internal auditor of Eastern Overboard Company prepares the bank reconciliation.He has difficulty managing the large number of outstanding checks at month-end in the bank reconciliation.Most of the outstanding checks are employee paychecks.

Accepted Answer

The answer of The following ten paragraphs describe control weaknesses...

Question 19

Match between columns
                        Premises:  Has authority to request the purchase of needed items
 Prepares a control total of checks paid and sends it to general ledger
 Reconciles bank statements
 Performs final matching of documents to authorize payments
 Computes gross pay, deductions, and net pay
 Counts and inspects incoming goods
 Has responsibility for distributing employee payroll checks
 Maintains clock cards and reconciles them to job time summary sheets
 Authorizes new employees and their pay rates and payroll deductions
 Frequently uses request-for-quotation forms to obtain bids

Accepted Answer

The Answer of Cash disbursements and Paymaster and Purchasing and is...

Question 20

Match between columns
                        Premises:  Rattlesnake Wire Company's purchasing manager selected his brother-in-law as a vendor and received a kickback for providing the business.
 Blazing Saddles Corporation ordered goods that receiving personnel stole. Receiving prepared a receiving report and sent it to accounts payable. The company unknowingly paid for the stolen goods.
 The production manager at Ghost Manufacturing Company told the payroll department he had hired a new employee. On payday, the paymaster could not find the employee and upon investigation, found that the employee did not exist.
 Price Company's purchasing department ordered goods requested by the maintenance department by phone. When the goods arrived, the maintenance department claimed that the goods were of such poor quality they could not be used.
 Connecticut Yankee Manufacturing Company ordered goods that were never received. The company, as a matter of standard policy, paid the invoice.
 Southern Star Manufacturing Company's payroll department routinely distributed paychecks on payday. The payroll supervisor suddenly quit her job. On the next payday, the payroll department could not find employees to claim two paychecks.
 Panhandle Products Company cannot easily identify vendors, and consistently selects vendors whose goods are overpriced and whose delivery schedules are too slow for Panhandle's needs.
 Lone Star Production Company received goods that were never ordered. The company paid the invoice.
 Half Moon Manufacturing Company's production manager is unsure that the second shift employees are working all hours reported on the job time tickets.
 The internal auditor of Eastern Overboard Company prepares the bank reconciliation. He has difficulty managing the large number of outstanding checks at month-end in the bank reconciliation. Most of the outstanding checks are employee paychecks.

Accepted Answer

The Answer of Separation of payroll and personnel departments and is...

Quiz 9: Procurement and Human Resources Business Processes

Discuss the employer's requirements for FICA tax,including the procedures for deposit,penalties for failure to deposit,the form used to report the tax,and the due dates of the form.

Form 941 is filed to report federal income and social security taxes withheld from employees.It is filed

The department responsible for the actual computation and preparation of payroll is the

When goods arrive at a company's location,what are the ways a receiving report (goods receipt document)can be prepared in SAP ERP's procurement business process?

Which one of the following represents a weakness in internal control regarding the human resources area?

Various payroll forms and reports must be submitted to federal and state entities by certain deadlines.The federal form which is not due on or before January 31 of each year is the

Explain the difference in a voucher system between recording invoices when they are approved for payment versus recording invoices when paid.

Employers engaged in interstate commerce are required by law to pay overtime at a minimum of one and one-half times the regular rate for hours worked in excess of 40 per week.The law that requires this is called the

The federal tax which requires that employees and employers contribute equally for old age,survivors',disability,and hospital insurance benefits is

Discuss why the buyer-vendor relationship is the most critical point of control in the procurement business process,and describe two procedures that can improve control in the buyer-vendor relationship.

Name four federal acts or types of taxes that relate to payroll,and briefly discuss the main provision of each.

Which of the following should not have access to signed paychecks?

The following ten items describe positions or departments related to procurement and human resource business processes. Listed below are ten positions or departments: Match the description with the positions or departments.

The following ten paragraphs describe control weaknesses in customer order and account management business processes. Listed below are ten controls that may help regulate the weaknesses: Match the paragraphs with the best control to address the system weakness. You will use each letter only once.