Internal Control Activities Within the Payroll Process, Identified as Independent

question 95

Multiple Choice

Internal control activities within the payroll process, identified as independent checks and reconciliations, would include which of the following?

• A)IT controls over computer records and physical controls in records storage area.
• B)Time sheets reconciled with the payroll register.
• C)The payroll register is checked for mathematical accuracy and agreement with authorized pay rates and deductions.
• D)Supervisor approves time sheets prior to preparation of payroll documents

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Definitions:

Misstatement

An error or inaccuracy in stating facts or details, often found in financial accounts or reports.

GAAS

Generally Accepted Auditing Standards; guidelines that auditors follow when conducting audits on companies' financial statements.

GAAP

Stands for Generally Accepted Accounting Principles, a set of accounting standards and practices used in the United States to ensure consistency and transparency in financial reporting.

Opinion Letter

A document issued by an auditor after the completion of auditing financial statements. This letter expresses whether the audit has been performed in compliance with Generally Accepted Auditing Standards (GAAS) and whether, in the auditor’s opinion, the financial statements fairly present the client’s financial position and results of operations in conformity with Generally Accepted Accounting Principles (GAAP).