AUD-Lesson 3_Payroll Cycle_Internal Control Continued Flashcards
1
Q
Which department approves changes in pay rates and deductions from employee salaries?
A
HR Department
2
Q
What department calculates pay?
A
Payroll
3
Q
Which department issues the checks to employees?
A
Treasury
4
Q
If checks are unclaimed, do they go back to Payroll?
A
No, they go to Treasury. Only Treasury issues the checks
5
Q
Who does the bank reconciliation?
A
The Controller
6
Q
How does an auditor (user auditor) evaluate the effectiveness of payroll controls when payroll services are provided by an outside vendor such as ADP?
A
The user auditor obtains an the audit opinion on the internal controls of the service provider that was provided by the service auditor.
