Questions from Auditing and Assurance

Q: Outsourcing the payroll function can provide many benefits, but there are

Outsourcing the payroll function can provide many benefits, but there are also risks associated with outsourcing. The IRS (www.irs.gov) provides information on outsourcing payroll duties for employers...

Q: Roost and Briley, CPAs, are doing the audit of Leggert

Roost and Briley, CPAs, are doing the audit of Leggert Lumber Co., an international wholesale lumber broker. Because of the nature of their business, payroll and telephone expense are the two largest...

Q: Identify five general ledger accounts that are likely to be affected by

Identify five general ledger accounts that are likely to be affected by the payroll and personnel cycle in most audits.

Q: What are the similarities and differences in the objectives of the following

What are the similarities and differences in the objectives of the following two procedures? (1) Select a random sample of receiving reports and trace them to related vendors’ invoices and acquisitio...

Q: List four examples of interest-bearing liability accounts commonly found in

List four examples of interest-bearing liability accounts commonly found in balance sheets. What characteristics do these liabilities have in common? How do they differ?

Q: Explain the relationship between the payroll and personnel cycle and inventory valuation

Explain the relationship between the payroll and personnel cycle and inventory valuation.

Q: List five tests of controls that can be performed for the payroll

List five tests of controls that can be performed for the payroll and personnel cycle and state the purpose of each control tested.

Q: Explain why the percentage of total audit time in the cycle devoted

Explain why the percentage of total audit time in the cycle devoted to performing tests of controls and substantive tests of transactions is usually far greater for the payroll and personnel cycle tha...

Q: Evaluate the following comment by an auditor: “My job is

Evaluate the following comment by an auditor: “My job is to determine whether the payroll records are fairly stated in accordance with accounting standards, not to find out whether they are following...

Q: Distinguish between the following payroll audit procedures and state the purpose of

Distinguish between the following payroll audit procedures and state the purpose of each: (1) Trace a random sample of prenumbered time cards to the related payments in the payroll register and compa...