Which of the Following Misstatements in the Payroll Cycle Could

question 43

Multiple Choice

Which of the following misstatements in the payroll cycle could be detected during the audit of payroll transactions (but would not be discovered as part of the audit of the bank reconciliation) ?

• A)failure to include outstanding payroll cheques on the outstanding cheque list
• B)overpayment of Receiver General payments received after the year end but recorded as cash receipts in the current year
• C)unclaimed payroll cheques recorded as a deposit near the end of the year,but reconciled as deposits in transit
• D)payment to fictitious employees that had been set up by the payroll supervisor

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Definitions:

Functional Authority

Functional authority is the right granted to individuals based on their expertise in specific areas, allowing them to direct activities within their domain of expertise.

Advisory Authority

The power to give advice and recommendations without having the authority to mandate actions.

Matrix Structures

Organizational design combining two or more types of structures, typically combining functional and project-based divisions to enable more flexible and responsive operations.

Social Network Analysis

A methodological approach to study the relationships and structures within a network of individuals, organizations, or systems, using graph theory to visualize connections.