tif_ch18

tif_ch18 - CHAPTER 18 Multiple-Choice Questions 1. easy c...

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CHAPTER 18 Multiple-Choice Questions 1. easy The document that indicates the assignments or departments an employee worked for during a given time period is the c a. rate authorization form. b. time card. c. job time ticket. d. payroll master file. 2. Payroll policies should require a competent, independent person to easy a. recalculate actual hours worked. d b. review for the proper approval of all overtime. c. examine time cards for erasures and alterations. d. do all of the above. 3. easy The signing and distribution of the checks must be properly handled to prevent their theft. Which of the following is not an important control consideration? b a. The person authorized to sign paychecks should not be involved otherwise in the preparation of the payroll. b. A check-signing machine should not be used to replace a manual signature. c. Distribution of pay checks should be performed by someone who is not involved in the other payroll functions. d. Unclaimed paychecks should be immediately returned for redeposit. 4. Which of the following statements about the payroll and personnel cycle is correct? easy c a. There are three classes of transactions within the payroll cycle – salaried employees, hourly employees, and commissioned employees. b. Transactions are less significant than related balance sheet accounts. c. Internal controls over payroll are effective for almost all companies, even small ones. d. All of the above are correct. 5. A form issued for each employee summarizing the earnings record for the calendar year is the easy a. rate authorization form. d b. summary payroll report. c. payroll master file. d. W-2 form. 6. The payroll and personnel cycle begins with which of the following events? easy a. Interviewing job candidates. b b. Hiring a new employee. c. Existing employees submitting requests for payment for work performed. d. Issuance of paychecks. 7. Most systems of internal control for payroll are easy a. loosely structured but well controlled. c b. loosely structured and loosely controlled. c. highly structured and well controlled. d. highly structured but loosely controlled. 18-1
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8. Good internal control for the payroll function is usually easy a. not difficult to establish. a b. difficult to establish. c. absent. d. a result of prior audit results. 9. easy Which of the following would not justify an auditor’s decision to spend very little time performing tests of transactions in the payroll and personnel cycle? a a. The new payroll bookkeeper has a much better educational background than the former one. b. Employees will detect any underpayments. c. Payroll transactions are uniform and uncomplicated. d. Payroll transactions are extensively audited by government agencies. 10.
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tif_ch18 - CHAPTER 18 Multiple-Choice Questions 1. easy c...

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