41. From a financial statement risk perspective, which organizational form is not considered a key control over the payroll and personnel functions?

	a.	New hire approval form.
	b.	Employee raise or promotion form.
	c.	Employee termination form.
	d.	Employee benefits election form.

QUESTION 43

1. An auditor is asked by her audit manager to plan audit procedures to detect potential payroll & personnel fraud. Which of the following procedures will most likely detect potential fraud?

   a.

   Review cancelled payroll checks for employee name, authorized signature, and proper endorsement, watching specifically for unusual or recurring second endorsements.

   b.

   Observe payroll staff preparing the biweekly payroll specifically focusing on net pay calculation.

   c.

   Trace benefit elections of the employee to the actual payroll ledger and the master file.

   d.

   Validate the payroll master file with the wage schedule by job title.

   45. In evaluating appropriateness of accrual balances for sick pay, vacation and other payments, an effective data point to analyze would be?

   	a.	expenses incurred in relation to accruals for the period.
   	b.	consistent accrual of liabilities relative to those of preceding periods.
   	c.	amount expenses in the current period.
   	d.	all data points above should be analyzed.