Class Discussion Exercise- Auditing Automated Controls You are auditing payroll for Alexander Inc., which uses transactions; the various steps in Alexander's system follow: computerized processing for its payroll As employees provide services, they enter the number of hours worked on time sheets that their supervisor approves at the conclusion of the pay period. Time sheets have an identifying field that indicates whether the employee is an hourly (H) or a salaried (S) employee. Fe sul The following data are entered into the input file: (1) employee number, (2) number of hours worked, and (3) employee status (hourly versus et salaried). For hourly employees, the number of hours worked is multiplied by the wage rate (obtained from the employee master file) to calculate gross pay. For salaried employees, the employee's salary rate is obtained from the employee master file. Dct rch When gross pay has been determined, deductions are from the employee master file and standard deduction tables (for federal tax withholdings, FICA withholdings, and Medicare withholdings). automatically calculated using information agra Net pay is calculated by subtracting deductions from gross pay. Required: a. What are the primary described? sources of error that can occur in the accounting information system just b. How would you examine Alexander's payroll? What key controls would you evaluate? r y mis the co 0 pro prod uppo ducti