For each$$ control, list a specific misstatement that could result from the absence of the control. Human resource policies require an investigation of an employment application from new employees. Investigation includes checking the employee's background, former employers, and references. $2.$ Approval of department head or foreman on time records is required before preparing payroll. tional errors could o

S$.$ An examination of cancelled checks or electronic payroll deposits and supporting documents, including time records and personnel records, is a test of the possibility of fraud. A test of the calculation of payroll is a test for an unintentional error caused by employees who are not competent.

T$.$ Attempt to access the online payroll master file using a password that is not allowed access to that master file.

U$.$ Check to see that all employees that are punched in one day are physically present.

V$.$ Examine cancelled checks to make certain that each check is properly endorsed, supported by a time record, and the person to whom the check is made out is still working for the company.

W$.$ Include test data transactions with invalid employee numbers to be inputted into the payroll accounting system and determine that all invalid transactions are automatically rejected by the software application.

X$.$ Obtain a list of company employees and make sure that each one has received a paycheck for the time period in question.

Y$.$ Perform a surprise payoff in which the auditor accounts for all paychecks and distributes them to the employees, who must provide identification in order to receive their checks or payroll direct deposit notifications.

Z$.$ Recheck the amounts for gross payroll, withholding and net payroll.

AA$.$ Test month$-$end bank reconciliations in detail to determine that the account reconciles properly, that all supporting documents are proper, looking especially for a check that cleared and was supposed to be voided, and that no alterations have been made to the bank statement.