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Possible misstatements related to the occurrence assertion

Question : Possible misstatements related to the occurrence assertion : 2134246

11) Possible misstatements related to the occurrence assertion for payroll transactions include all of the following except:

A) payments to fictitious employees.

B) payments to terminated employees.

C) payments to valid employees who have not worked.

D) payments to valid employees at a rate in excess of the authorized amount.

12) The proper use of prenumbered termination notice forms by the Payroll Department should provide assurance that all:

A) uncashed payroll checks were issued to employees who have not been terminated.

B) personnel files are kept up to date.

C) employees who have not been terminated receive their payroll checks.

D) terminated employees are removed from the payroll.

13) An auditor vouched data for a sample of employees in a payroll register to approved clock card/time sheet data to provide assurance that:

A) payments to employees are computed at authorized rates.

B) employees worked the number of hours for which they are paid.

C) segregation of duties exists between the preparation and distribution of the payroll.

D) internal controls relating to unclaimed payroll checks are operating effectively.

14) Which of the following internal control objectives is likely to be a larger concern in the audit of the payroll cycle?

A) Payroll transactions are properly disclosed.

B) Recorded payroll transactions are valid.

C) Payroll transactions are recorded in the appropriate time period.

D) All payroll transactions have been recorded.

15) Which of the following circumstances most likely would cause an auditor to suspect an employee payroll fraud scheme?

A) There are significant unexplained variances between standard and actual labor cost.

B) Payroll checks are disbursed by the same employee each payday.

C) Employee time sheets are approved by individual departmental supervisors.

D) A separate payroll bank account is maintained on an imprest basis.

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