Internal Control: Operating Cycles: Class Questions - Review 2 скачать в хорошем качестве

Internal Control: Operating Cycles: Class Questions - Review 2

In this video, 3.10 – Internal Control – Operating Cycles – Review 2, increase your understanding of internal control and operating cycles with Roger Philipp, CPA, CGMA. The first question concerns the role of the accounts payable department within the spending cycle. Do accounts payable personnel stamp, perforate, or otherwise cancel supporting documentation after payment is made? If not, who does? What about ascertaining approval of each requisition for price, quantity and quality? Or obliterating the quantity ordered on the receiving department copy of the purchase order? Find out as Roger explains these duties within the spending cycle in detail. The second question concerns proper segregation of duties within the payroll and personnel cycle. Roger reviews how duties should be allocated between the personnel department (HR) and the payroll department. The next two questions delve further into the separation of duties between personnel and payroll within the personnel and payroll cycle, plus the specific duties of the treasurer. The next question requires an understanding of why an auditor might observe the distribution of paychecks to employees – what audit purpose does this activity serve? The final question concerns which department is responsible for employee pay rate changes and deductions within the personnel and payroll cycle. Connect with us: Website: https://accounting.uworld.com/cpa-rev... Blog: https://accounting.uworld.com/blog/cp... Twitter:   / uworldrogercpa   Facebook:   / uworldrogercpareview   Instagram:   / uworldrogercpareview   Pinterest:   / uworldrogercpareview   LinkedIn:   / uworld-roger-cpa-review   Are you accounting faculty looking for FREE CPA Exam resources in the classroom? Visit our Professor Resource Center: https://accounting.uworld.com/cpa-rev... Video Transcript Sneak Peek: Number 12, for effective internal control the accounts payable department generally should what? What should payables do? They get this, they get this, they get this, they authorize the payment, and they may even prepare the check, and then give it to the treasurer who signs the check. A, they should stamp, perforate or otherwise cancel supporting documents after payment is made. Who cancels these after payment is made? The treasurer. B, ascertain that each requisition is approved as to price, quantity, quality. The person who does that is in the purchasing department, not the payables department. C, obliterate the quantity ordered on the receiving department copy. Who obliterates the quantity before they send it over here? That would be purchasing, not payables. D, establish the agreement of the vendor's invoice with receiving report and purchase order. Who established the agreement between this and this and this? That is indeed payables, very nice, very nice, and very nice. Number 13, an auditor would most likely assess control risk, risk material statement, at a high level if the payroll department supervisor is responsible for doing what? Let's see, assessing control risk high. Here's personnel, as we talked about we said what? Assessing personnel... That means control risk is high. Why, because reliance is low. We want this to go up, we better do less work. Basically what they're saying is reliance is low. Control risk is high because reliance is low. Why is reliance low? They're saying one of these is bad, you can't rely. An auditor will most likely assess control risk at a high level that means if the payroll department's supervisor is responsible for what? What should they not do? Examine the authorization forms for new employees. What should payroll do, what should they not do? Should payroll... Someone gets hired, they then authorize them to be an employee, and shouldn’t they send documentation to payroll so payroll can set them up in the system? Should they be able to examine authorization forms for new employees, not prepare them but examine them? Sure. Comparing payroll register with original transmittal data that means batched information that comes out of the computer, out of the system. Should they be able to see that to make sure what they process is what the computer spit out? Yeah. Authorizing payroll rate changes for all employees. Who authorizes payroll rate changes? That's personnel, not payroll. Payroll processes the payroll. Personnel authorizes the rate changes. Hiring all subordinate payroll department employees. Normally personnel hires, HR, but could I hire my subordinate? Can I hire my assistant in my department? Sure, that's not a problem. What is a problem, is they should not do this. They should not hire, fire, determine salary, determine pay rate changes. They should not do that, personnel should. What should they not do? Answer C.