Question: (a) (b) Labour is an important consideration in the valuation of inventory in manufacturing construction and other industries. Payroll is an area in which

(a) (b) Labour is an important consideration in the valuation of inventory

(a) (b) Labour is an important consideration in the valuation of inventory in manufacturing construction and other industries. Payroll is an area in which company resources can be wasted because of inefficiency or stolen through fraud. Required: Briefly explain FIVE (5) internal controls over the payment of payroll function. (5 marks) Differentiate between review of audit documentation and independent review. State the objective of each. (4 marks)

Step by Step Solution

★★★★★

3.41 Rating (151 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Following are the internal controls over the payment of payroll function 1 Audit Have either internal auditors or external auditors conduct a periodic audit of the payroll function to verify whether ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

The observer-participant relationship is an important consideration in the design of observational studies. What kind of relationship would you recommend in each of the following cases? (a)...

Explain why errors in the valuation of inventory at the end of the year are sometimes called counterbalancing or self-correcting.

Explain why the lock-up period is an important consideration for investors, especially for issues that are still largely held by insiders?

Around nine in the morning on April 24, 2013, Rana Plaza, an eight-story building in Savar, Bangladesh, collapsed catastrophically in a hail of twisted concrete, steel bar, and sewing machinery. At...

Kreme Doughnuts Krispy, Inc. On March 4, 2009, the SEC reached an agreement with Krispy Kreme Doughnuts, Inc., and issued a cease-and-desist order to settle charges that the company fraudulently...

Dalston Limited was incorporated on 1 November 2018 as a limited liability company. but commenced business on 1 January 2019. It carries out general merchandise business. On 5 February 2020, your...

Northern Virginia Community College HOW MUCH FINANCIAL RISK SHOULD YOU TAKE? Mark D. D'Antonio Nova Southeastern University FORT LAUDERDALE, FLORIDA, U.S.A. Abstract A successful retirement...

1. The collection of hardware, software, data and communication technology is known as a. A system b. An information system c. System analysis d. Information technology 2. In flowcharts, what is the...

PRO-FORMS, INC. J.B. Bryson (-Br to everyone who knew her). General Manager of Pro-Forms. Inc., read the invitation with interest: You are invited to attend a retirement party for Iris David...." Was...

Define your topic Select a real-life context you are familiar with, or a fictitious 'real-life-like' context, where you can identify an issue that can be solved using descriptive statistics. There...

A mechanism consists of a slotted disk of mass m and radius R that rotates at a constant rate about fixed point A. As shown in the figure below left, a rod of mass m and length L is arranged so end B...

Alpha Hospital, a large not-for-profit organization, has adopted an accounting policy that does not imply a time restriction on gifts of long-lived assets. Required For items 1 through 6, indicate...

Which of the following are true of change in the business world? ( Select all that apply ) Change refers to the undertaking of a new concept or behavior by a company. Change cannot be avoided in...

Keener Incorporated had the following transactions occur involving current assets and current liabilities during February 2017. Feb. 3 Accounts receivable of $15,000 are collected. 7 Equipment is...

Why do you believe E-Centives chose not to raise public equity in the United States? What are the potential drawbacks related to the decision not raise capital in the U.S. public markets?

Assume that are the financial manager of a company, which is considering a potential project with a new product that is expected to sell for an average price of $22 per unit and the company expects...

Firms 1 7 operate in the industries shown. All seven firms are considering projects in the industries shown, to be financed using the same mix of debt and equity (B/V and S/V, respectively) as...

En una pequea isla existe 250 personas que trabajan nicamente en una empresa. Sus salarios (en moneda local) tiene la siguiente distribucin de frecuencias: a) Cul es la media de los salarios de las...

MINI CASE 2 ODPG - _Mini Case: Why are we Losing Market Share? "A Porter's what" Jenny said, looking impatient as she glanced over at Carver. "J_e_n_n_y_,_ _i_t_'s_ _c_a_l_l_e_d_ _a_ _P_o_r_t_e_r_'s_...

Can someone please help me answer the four questions on the first two pages? NA0274 Cavendish Cove Cottages Sean Hennessey, University of Prince Edward Island \"I just don't know if the asking price...

THE COMPANY: Aylmer Industries Inc. (Aylmer) has been in business since Y4. Aylmer has two main business segments. This first segment is the construction of large-scale projects. In Y7, Aylmer had...

Please see the snap photo below for further instructions. thank you 1. Read the Electrolux and GE Applianceh 2. \"the Excel spreadsheet template prov1 e posted N 3 Answer the following questions....

Questions: 1. Identify the key criteria and considerations that need to be taken into account in evaluating BFSI entry in the proposed foreign markets. 2. Of the countries under consideration, which...