What are the most common errors and frauds in the personnel and payroll cycle? Which control characteristics are auditors looking for to prevent or detect these errors and frauds?

Q: Ed Caluag, CPA was engaged to audit the financial statement of KMJS, Company, a continuing audit…

A: Firstly select the payroll register for a specific period, and check the details: Test the…

Q: The management fraud is committed by a top level management employee? Give an example of those top…

A: frauds committed by management ( top-level ) -   - management frauds are committed by top-level…

Q: Items 1 through 8 are selected questions typically found ininternal control questionnaires used by…

A: We will answer only first two sub-parts of this question as it is not mentioned which sub-part is to…

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 activities performed by a department supervisor most likely would help to…

A: The departmental supervisor approves payroll. If the departmental supervisor distributed paychecks…

Q: When comparing the auditor's responsibility for detecting employee fraud and for detecting errors,…

A: Employee errors means mistakes happened in preparation of financial statements by the employee and…

Q: The following are typical questions that might appear on an internal control questionnaire for…

A: The key Internal control activities are as follows:- Segregation of duties Authorization and…

Q: Which of the following activities most likely would be considered a weakness in an entity’s internal…

A: Answer:   Option c

Q: __________are the systems used by an organization to manage risk and diminish the occurrence of…

A: Introduction: Fraud: Fraud is a intentional deception resulting loss to other party. Fraud can be of…

Q: The following are typical questions that might appear on an internal control questionnaire for…

A: The key Internal control activities are as follows:- Segregation of duties Authorization and…

Q: What is the purpose of the following control procedures (i.e., what threats is it designed to…

A: A payroll register provides the information related to the pay of each employee during each pay…

Q: Define and explain the differences among several kinds of employee frauds that might occur at an…

A: Fraud - Fraud is an intentional act done by an employee involving the use of forgery of instrument,…

Q: The purpose of separating the duties of hiring personnel and distributing payroll checks is…

A: Operational responsibility forms part of the record-keeping responsibility. Hence authorization of…

Q: How could an employee embezzle funds by issuing an unauthorized sales credit memo if the appropriate…

A: Credit memo is generally issued by a seller to the customer which reduces the amount of account…

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: The following are typical questions that might appear on an internal control questionnaire for…

A: There are 2 types of substantive audit procedures:- Test of detail Analytical procedures

Q: When it comes to control systems and materiality, why could fraud examiners' views vary from those…

A: Misstatements and judgments are taken into account when determining materiality in the design and…

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: 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: ontrol problems in the system

A: Internal control system is a set of policies and procedures to be followed in case of operations of…

Q: Companies set up internal controls to protect against fraud and waste. true or false

A: Internal control: Internal control is a process which ensures continuous reliability of…

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: What type of internal controls are job rotation, preparation of bank reconciliations, segregation of…

A: Internal control: Internal control is a policy or procedures enforced by management in an…

Q: What category does inventory related fraud fall into?

A: Inventory fraud refers to the fraud related to the theft of the physical items of inventory as well…

Q: What do documentation procedures and independent internal verification procedures have in commor O…

A: Documentation procedures and independent internal verification procedures is part of internal…

Q: If a client uses ADP, a service center, for processing payroll, None of these. auditing standards…

A: ADP is automatic data processing facility for payroll processing. This type of processing is done by…

Q: Explain why collusion between employees and management in the commission of a fraud is difficult to…

A:

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: Explain why collusion between employees and management in the commission of fraud is difficult to…

A: Fraud refers to an act which is committed intentionally by one person which results in financial…

Q: An audit team most likely would assess control risk at the maximum if the payroll department…

A: An audit team most likely would assess control risk at the maximum if the payroll department…

Q: Employee Embezzlement via Cash Receipts and Payment of Personal Expenses.Assume you have received a…

A: Since multiple questions are posted only the first three questions will be answered. Kindly resubmit…

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: What do documentation procedures and independent internal verification procedures have in comm O…

A: Internal control are the procedures and policies that ensure the safeguarding of Assets and reduce…

Q: Who is the professional bodies that responsible in fraud audit? Birefly explain.

A: Fraud in audits occurs when an entity is discovered to have improperly manipulated financial…

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: What internal control procedure ( s ) would provide protection against the following threats ? An…

A: Internal control: this is a procedure in auditing which helps the entity in maintaining the…

Q: A company wants to implement good internal control. What are the policies and procedures you can…

A: Internal Control:   It is a process of assuring the effectiveness and efficiency of the objectives…

Q: Which internal control is not an important part of the payroll system? a. supervisors verify the…

A: Definition: Payroll system: The payroll system is a system within an organization that manages the…

Q: In the event of payroll fraud, discuss the suggestion that the human elements of control systems are…

A: Employee payroll fraud is a complex problem for small company owners in the United States. The…

Q: what is the most critical risks in your payroll process? What should be the internal control to…

A: Payroll process is the most important process in any organization as it would be a critical factor…

Q: Distinguish between employee fraud and management fraud.

A: Employee fraud behavior occurs if an employee is falsely or fraud dedicated to its boss. The firm…

Q: Why do you think companies were not able to detect the fraud in their previous audit?

A: The responsibility for the prevention and detection of fraud and error rests with the management…

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: What are the most frequent mistakes and scams that occur in the payroll and personnel processes?? In…

A: This question explains about the most frequent mistakes and scams that occur in the payroll and…

Fraud

Fraud in accounting is the planned manipulation of financial documents to make a false appearance of corporate financial health. Moreover, it includes an employee, accountant, or the company itself misleading investors and shareholders.