In Determining the Effectiveness of an Entity's Policies and Procedures

question 110

Multiple Choice

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 and

• A)observe the separation of duties concerning personnel responsibilities and payroll disbursement.
• B)inspect evidence of accounting for prenumbered payroll checks.
• C)recompute the payroll deductions for employee fringe benefits.
• D)verify the preparation of the monthly payroll account bank reconciliation.

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Definitions:

Service Relay Valve

A Service Relay Valve is a pneumatic device in heavy-duty vehicles' braking systems that responds to signals from the brake pedal to apply or release air pressure to the brakes, ensuring timely and proportional braking action.

Trailer Air Tanks

Pressurized air reservoirs used in the air brake system of a trailer to store compressed air necessary for brake operation.

Service Brake Chambers

Components in air brake systems that convert air pressure into mechanical force to apply the brakes.

Hold-Off Circuit

The air brake circuit used to charge air to the spring brake chambers to compress the park spring. The hold-off circuit must be charged with air before a vehicle with spring brakes can move.