As part of a normal payroll audit, the auditor will review a variety of supporting papers and records
Q: Below are some audit procedures. Classify each procedure according to the following types of audit…
A: Solution:- Classification of each procedure according to the following types of audit evidence as 1)…
Q: What documents are included in the audit trail for payroll?
A: Payroll System: Payroll system is a system within an organization that manages the payment of…
Q: Develop audit procedures for the use of analytical procedures as a substantive procedure in the…
A: First and foremost, we must comprehend the concept of payroll cost. Payroll cost refers to the wages…
Q: below presents the payroll procedures of XYZ Limited. We discussed various aspects of such payroll…
A: Payroll In a simple word payroll means the compensation which are provided by the companies to its…
Q: Which of the following payroll control activities would most effectively ensure that payment is made…
A: Payroll: Payroll refers to the total amount that is required to be paid by the company to its…
Q: s
A: Auditing refers to the process when an auditor physically checks all the facts and figures of a…
Q: Which of the following activities performed by a department supervisor most likely would help to…
A: The departmental supervisor approves payroll. If the departmental supervisor distributed paychecks…
Q: Describe a walkthrough of the payroll transaction flow from hiring authorization to payroll…
A: Payroll Cycle: The payroll cycle is commenced with the hiring and dismissal of an employee along…
Q: (a) the payment of an unauthorized employee and (b) omission of payments to an employee may be…
A: Introduction: Payroll is a term that refers to a company's roster of employees and the money sent to…
Q: Internal Control Questionnaire Items: Assertions, Tests of Controls, and PossibleErrors or Frauds.…
A: Are names of terminated employees reported in writing to the payroll department? Occurrence- Trace…
Q: Please help me pass!... Thank you in advance!!
A: Firstly select the payroll register for a specific period, and check the details: Test the…
Q: In determining the effectiveness of an entity’s policies and procedures relating to the occurrence…
A: Management Assertion: Management assertion refers to the claim made by management assuring about…
Q: Identify five general ledger accounts that are likely to be affectedby the payroll and personnel…
A: The general ledger accounts are graphically presented in the form of T-accounts. All the debit…
Q: nternal Control Questionnaire Items: Assertions, Tests of Controls, and PossibleErrors or Frauds.…
A: a.
Q: List the supporting documents and records the auditorwill examine in a typical payroll audit in…
A: Audit: Audit is the process of verification of the compliance of the financial statements.
Q: Required 1. Prepare a flowchart of the Sherman's payroll system. 2. Discuss the risks for payroll…
A: Payroll System: Payroll system is an arrangement within an organization that manages the payment of…
Q: Evaluate the difficulties associated with preventing and detecting payroll fraud.
A: Payroll is the compensation that a firm must pay to its employees on a given day and for a specific…
Q: sses and exampl
A: Here are some of the common risks to be aware of and payroll processes can help in them: Overtime…
Q: ) The following audit procedures are typical of thosefound in auditing the payroll and personnel…
A: Auditing: In auditing, auditors verify the correctness and fair presentation of financial…
Q: Required Vwof the working papers to verify the trade accounts payable balance at year-end and that…
A: Audit can be defined as the evaluation and assessment of the financial statements for a particular…
Q: Determine the following as a result of your audit: 1. How much is the correct carrying value of the…
A: Financial liabilities that are held for trading are measured at Fair Value through Profit and Loss.…
Q: Payroll Processed by a Service Organization. Assume that you are the audit senior conducting a…
A: Payroll: Payroll refers to the list of employees in a company and the amount paid to them in the…
Q: Advise the college on the weakness in its systems and procedures due to payroll fraud.
A: List of some actions to be taken by college on the weakness in its systems and procedures due to…
Q: are a member of external audit team for Hadi International Limited. Payroll was assigned to you for…
A: Audit Procedure: A specific procedure undertaken by an auditor to procure evidence in a particular…
Q: What is NOT an example of internal control procedures that help prevent payroll fraud? a.Outsource…
A: Internal control is a technique used by internal management to analyse the efficiency and…
Q: Describe a minimum of three ways Accounting Iinformation System can help minimize or eliminate…
A: Following are the three ways that helps to minimize and eliminate inaccurate time and attendance…
Q: Explain what is meant by determining the degree of correspondencebetween information and established…
A: To do an audit, there must be information in a verifiable form and some standards(criteria) by which…
Q: What features of a payroll system could be expected to prevent or detect the (a) payment of a…
A: Payroll: Payroll refers to the list of employees in a company and the amount paid to them in the…
Q: What are solutions a company can take to protect itself against any employees committing fraud…
A: Payroll theft or fraud is the misusing of the company's funds to issue wrong payments or salaries.…
Q: what are the examples of independent verification controls in a payroll accounting system
A: Payroll accounting involves recording of Employee related data including: gross wages, salaries,…
Q: Control risk is the risk that a material misstatement in an account will not be prevented or…
A:
Q: Which of the following statements is true about compliance audit? A Review of income tax returns of…
A: SOLUTION- COMPLIANCE AUDIT - IT IS THE TYPE OD AUDIT SERVICE THAT THEIR PERFORMANCE OR PROCEDURE IS…
Q: When control risk is assessed as low for assertions related to payroll, substantive tests of payroll…
A: Solution Concept Control risk It is a risk that the company’s internal control will not be able to…
Q: Describe TWO (2) audit procedures to be performed in the audit of payroll transactions in addressing…
A: AUDIT:- Audit is an examination of books of accounts of the enterprise by the auditor.. An auditor…
Q: An audit client has engaged a third-party service organization tohost its payroll software package…
A: Given: The engagement of the third-party for hosting the payroll software package.
Q: Complete the following statements regarding the types of audit conducted by the IRS. Taxpayers…
A: The purpose of any audit is to detect the fraud, misrepresentation and risk involved…
Q: Match the four functions of payroll activities with their related internal controls: a. An…
A: Payroll: Payroll refers to the total amount that is required to be paid by the company to its…
Q: The Accounting Iinformation System may assist to decrease or eliminate erroneous time and attendance…
A: Accounting information system: It refers to an information system used in different accounting…
Q: Describe the nature of the evidence the internal revenue agentwill use in the audit of Jones…
A:
Q: An employee not involved in personnel, timekeeping, supervision of employees, or payroll accounting…
A: The question is related to internal controls pertaining to payroll. Internal control is a process…
Q: billing
A: Billing fraud- It aims to have a business make a payment to the employee and record that payment as…
Q: fy types of errors that may cau
A: Payroll records is maintained by the employer which include number of working hours, average pay…
Q: In auditing payroll withholding and payroll tax expense, explainwhy emphasis should normally be on…
A:
Q: Which control activity is the entity implementing when at the end of each month, an HR clerk is…
A: Payroll refers to the list of employees of any company which is entitled to receive a desired sum of…
Q: s a member of an audit team required to disclose to a client that a commission will be received at…
A: Commission refers to a form of compensation which includes the adequate base salary of an employee…
Q: Figure below presents the payroll procedures of AAA Limited. We discussed various aspects of such…
A: 1.Time card Fraud : If employees falsly mentioned their time in their time sheet and get paid for…
Q: Describe SIX (6) audit risks, and explain the auditor’s response to each risk, in planning the audit…
A: Audit Risk Audit risk which describes as the chances of the risk of material misstatement or the…
As part of a normal payroll audit, the auditor will review a variety of supporting papers and records.
Step by step
Solved in 2 steps
- What special accounts must usually be opened in the general ledger to record payroll tax entries?describe the substantive audit procedures you will perform on a) payroll transactions in the profit and loss accountList the supporting documents and records the auditorwill examine in a typical payroll audit in which the primary objective is to detect fraud
- In determining the effectiveness of an entity’s policies and procedures relating to the occurrence assertion for payroll transactions, auditors most likely would inquire about anda. Observe the separation of duties concerning personnel responsibilities and payrolldisbursement.b. Inspect evidence of accounting for prenumbered payroll checks.c. Recompute the payroll deductions for employee benefits.d. Verify the preparation of the monthly payroll account bank reconciliationYou are a member of external audit team for Hadi International Limited. Payroll was assigned to you for verification. What procedures will you follow for verification of Payroll?The following are typical questions that might appear on an internal control questionnaire for payroll activities: 1. Is there adequate separation of duties between employees who maintain human resources records and employees who approve payroll disbursements? 2. Is there adequate separation of duties between personnel who maintain timekeeping or attendance records for employees and employees who distribute payroll checks? Describe the manner in which each of the above controls might be tested.
- The following are typical questions that might appear on an internal control questionnaire for payroll activities: 1. Is there adequate separation of duties between employees who maintain human resources records and employees who approve payroll disbursements? 2. Is there adequate separation of duties between personnel who maintain timekeeping or attendance records for employees and employees who distribute payroll checks? Describe the purpose of each of the above controlsFor the purpose of internal control, the same person who prepares payroll checks should also distribute them. True or False True FalsePayroll: Risks and Controls Below are some of the processes that are typically executed before, during, and after a payroll cycle: Employees record their hours worked. The supervisor reviews and approves each employee's time records with their signature. An officer from the Human Resources department updates employee files after receiving authorized records of overtime and leaves (vacations, illness, etc.) from the supervisor. Afterward, approved records are sent to the payroll officer in the accounting department. The payroll officer calculates the gross payment, applies deductions, and calculates the net payment. Subsequently, the final payroll is sent for the controller's approval. Payments are issued to employees using their preferred delivery method (check or direct deposit). Entries are generated for the corresponding payroll transactions. Withholdings for payroll taxes, Social Security, and Medicare are respectively remitted to the Department of Treasury and the Internal…
- Match the four functions of payroll activities with their related internal controls: a. An independent employee should sign and distribute the prenumbered checks. select a function Hiring EmployeesPaying the PayrollPreparing the PayrollTimekeeping b. Supervisors should monitor hours worked through time reports. select a function Hiring EmployeesPaying the PayrollPreparing the PayrollTimekeeping c. Human Resources department should authorize employment. select a function Hiring EmployeesPaying the PayrollPreparing the PayrollTimekeeping d. Two or more employees should verify payroll amounts. select a functionDescribe a walkthrough of the payroll transaction flow from hiring authorization to payroll checkdisbursement. (a) What document copies would be collected? (b) What controls should be noted?what are the examples of independent verification controls in a payroll accounting system
