Internal Control Questionnaire Items: Assertions, Tests of Controls, and Possible Errors or Frauds.

Following is a selection of items from the payroll processing internal control questionnaire.

1. Are names of terminated employees reported in writing to the payroll department?

2. Are authorizations for deductions signed by the employee on file?

3. Is there any timekeeping department independent of the payroll function?

4. Is timekeeping and cost accounting records reconciled with the Payroll department calculation of hour and wages?

Required: For each of the four preceding questions:

a. Identify the assertion to which the question applies.

b. Specify one test of controls an auditor could use to determine whether the control was operating effectively.

c. Provide an example of an error or fraud that could occur if the control were absent or ineffective.

Please give detailed explanation especially for the est of controls, possible errors and substantive procedures, not just the explanations already given by the book solutions