An Auditor Reviews a Client's Payroll Procedures

question 44

Multiple Choice

An auditor reviews a client's payroll procedures.The auditor would consider the internal control to be less than effective if a payroll department supervisor was assigned the responsibility for:

• A)reviewing and approving time reports for subordinate employees.
• B)distributing payroll cheques to employees.
• C)hiring subordinate employees.
• D)initiating requests for salary adjustments for subordinate employees.

Acknowledge the potential pitfalls in group decision-making, such as the planning fallacy and confirmation bias.

Understand the complexity and dynamics of group decision-making processes.

Identify and explain the various decision-making methods, including Vroom's model.

Recognize the ethical considerations and justice issues within group decision-making.

---

Definitions:

Alternative

An option or choice that serves as a substitute to a decision or course of action.

Intermediate Product

Goods that are produced and used as inputs in the production of other goods, rather than being sold directly to consumers.

Processed Further

A decision in cost accounting regarding whether or not to continue adding value to a product beyond the split-off point.

Differential Revenue

The difference in revenue expected from two different business decisions or scenarios, often considered when evaluating options.