Accounting Information Systems: The Processes and Controls, 2nd Edition

END OF CHAPTER MATERIAL

CONCEPT CHECK

1. 1. Which of the following statements about payroll and fixed asset processes is true?
   1. Both have only routine processes.
   2. Both have only nonroutine processes.
   3. Both have routine and nonroutine processes.
   4. Payroll has only routine processes, while fixed asset has only nonroutine
2. 2. For a given pay period, the complete listing of paychecks for the pay period is a
   1. payroll register
   2. payroll ledger
   3. payroll journal
   4. paymaster
3. 3. A payroll voucher
   1. authorizes an employee paycheck to be written
   2. authorizes the transfer of cash from a main operating account to a payroll account
   3. authorizes the transfer of cash from a payroll account to a main operating account
   4. authorizes the paymaster to distribute paychecks
4. 4. For proper segregation of duties, the department that should authorize new employees for payroll would be
   1. payroll
   2. human resources
   3. cash disbursement
   4. general ledger
5. 5. Which of the following is not an independent check within payroll processes?
   1. Time sheets are reconciled with production records.
   2. Time sheets are reconciled with the payroll register.
   3. Paychecks are prepared on prenumbered checks.
   4. The payroll register is reconciled with the general ledger.
6. 6. An integrated IT system of payroll and human resources may have extra risks above those of a manual system. Passwords and access logs are controls that should be used in these integrated ...