Following are some of the tests of controls and substantive tests of transactions procedures often performed in the payroll and personnel cycle. 1. Examine the time card for the approval of a supervisor. 2. Recompute hours on the time card and compare the total with the total hours for which the employee has been paid. […]
1. Describe why transactions in the payroll and personnel cycle are generally more significant than payroll-related balance sheet accounts. 2. Explain the differences in the primary roles performed by human resources, the employee’s primary supervisor, and those who oversee the creation of a payroll journal or listing and the payroll master file.
ACCOUNTS AND TRANSACTIONS IN THE PAYROLL AND PERSONNEL CYCLE Identify the accounts and transactions in the payroll and personnel cycle.
AUDIT OF THE PAYROLL AND PERSONNEL CYCLE Identify the accounts and transactions in the payroll and personnel cycle.Describe the business functions and the related documents and records in thepayroll and personnel cycle.Understand internal control and design and perform tests of controls and substantivetests of transactions for the payroll and personnel cycle.Design and perform substantive analytical […]
The following questions concern internal controls and accumulating evidence in the acquisition and payment cycle. Choose the best answer. a. While auditing a client’s purchase transactions, an auditor selects a sample of vouch- ers and then compares the dates on the vouchers to the dates on which the corre- sponding transactions were actually recorded in […]
The following are steps in the methodology for designing tests of controls, substantive tests of transactions, and tests of details of balances for the payroll and personnel cycle: 1. Design tests of details of balances for the payroll and personnel cycle. 2. Evaluate whether control risk can be assessed as low for payroll. 3. Design […]
The following audit procedures are typical of those found in auditing the payroll and personnel cycle: 1. Examine owner approval of rates of pay and withholdings. 2. Examine evidence that payroll hours and wage rates are verified by an independent person. 3. Select a sample of 40 entries in the payroll journal and trace each […]
Identify five general ledger accounts that are likely to be affected by the payroll and personnel cycle in most audits. 20-2 (OBJECTIVES 20-1, 20-3) Explain the relationship between the payroll and personnel cycle and inventory valuation. 20-3 (OBJECTIVE 20-2) Distinguish among a payroll master file, a W-2 form, and a payroll tax return. Explain the […]
ACCOUNTS AND TRANSACTIONS IN THE PAYROLL AND PERSONNEL CYCLE Identify the accounts and transactions in the payroll and personnel cycle.
Identify three asset accounts, three expense accounts, and three liability accounts typically associated with acquisition and payment cycle transactions. 19-2 (OBJECTIVE 19-2) Explain the relationship between substantive tests of transactions for the acquisition and payment cycle and tests of details of balances for the verification of property, plant, and equipment. Which aspects of property, plant, […]
