20-17 (Objective 20-3)\u00a0The following questions concern internal controls in the payroll and personnel cycle. Choose the best response.\ta. A factory foreman at Steblecki Corporation discharged an hourly worker but did not notify the human resources department. The foreman then forged the worker’s signature on time cards and work tickets and, when giving out the checks, diverted the payroll checks drawn from the discharged worker to his own use. The most effective procedure for preventing this activity is to\t20-20 (Objectives 20-2, 20-3)\u00a0Following are some of the tests of controls and substantive tests of transactions procedures often performed in the payroll and personnel cycle. (Each procedure is to be done on a sample basis.)\t21-17 (Objective 21-1)\u00a0The following questions concern internal controls in the inventory and warehousing cycle. Choose the best response.\t21-18 (Objectives 21-1, 21-3)\u00a0The following questions concern testing the client’s internal controls for inventory and warehousing. Choose the best response\t21-19 (Objectives 21-1, 21-4, 21-5, 21-6)\u00a0The following questions deal with tests of details of balances and analytical procedures for inventory. Choose the best response\t21-20 (Objectives 21-1, 21-3, 21-5, 21-6, 21-7)\u00a0Items 1 through 8 are selected questions typically found in questionnaires used by auditors to obtain an understanding of internal control in the inventory and warehousing cycle. In using the questionnaire for a client, a “yes”\ufffd response to a question indicates a possible internal control, whereas a “no”\ufffd indicates a potential deficiency.\t24-22 (Objective 24-2)\u00a0The following questions deal with contingent liabilities. Choose the best response.\t24-23 (Objectives 24-5, 24-7)\u00a0The following questions concern communications between management, those charged with governance, and the auditor. Choose the best response.\t24-27 (Objective 24-2)\u00a0In an audit of the Marco Corporation as of December 31, 2011, the following situations exist. No entries have been made in the accounting records in relation to these items.\t24-28 (Objective 24-3)\u00a0In analyzing legal expense for the Boastman Bottle Company, Mary Little, CPA, observes that the company has paid legal fees to three different law firms during the current year. In accordance with her CPA firm’s normal operating practice, Little requests standard attorney letters as of the balance sheet date from each of the three law firms.<\/p>\n","protected":false},"excerpt":{"rendered":"
20-17 (Objective 20-3)\u00a0The following questions concern internal controls in the payroll and personnel cycle. Choose the best response. a. A factory foreman at Steblecki Corporation discharged an hourly worker but did not notify the human resources department. The foreman then Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-201393","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/201393","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=201393"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/201393\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=201393"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=201393"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=201393"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}