Basic transaction control of refunds and surcharges Essay Example

incidents of asset disappearance, theft, or employee dishonesty in the past three years. Additionally, the questionnaire should assess whether departmental signature authorization records and online approval researches are current.

Are there any instances of employees re-delegating authorized signatures that were initially delegated to them? What measures are implemented to ensure the precision of the order, including insurance coverage, overlaps, duplications, among others.

When one person manages requisitioning, purchasing, and receiving tasks, there is a possibility of fraudulent or unauthorized purchases being made. This creates a risk of theft and potential payment for unapproved purchases.

It is important to separate the accounts payable function from the general ledger function in order to prevent theft of the entity's cash. If the disbursement function has access to both functions, unauthorized checks may be issued with fictitious documents and unauthorized transactions can be recorded.

Which tests are conducted for each internal control objective? To avoid misstatements, key control measures include segregating duties, independently reviewing and reconciling vendor statements, and performing monthly bank reconciliation. It is necessary to ensure the validity of these measures by observing and evaluating the proper segregation of duties.

Computer-assisted audit techniques (Cats) can be used by an auditor to carry out two tests for purchase transaction controls, including posting and summary review reconciliation on 11-7. One approach is to follow a selection of receiving reports back to their corresponding vendor invoices and vouchers.

The human resource management process requires segregation of duties to prevent errors or fraud. Key segregation of duties include separating the supervision function from the personnel records and payroll-processing functions. If one person is responsible for all three, they could create

fake employees or authorize unauthorized payments. Additionally, the disbursement function should not be combined with personnel records, supervision, or payroll-processing duties.

Issuing unauthorized payroll checks is possible when a single person holds responsibility for the disbursement function along with the power to hire or dismiss employees, authorize time reports, and prepare payroll checks.

To properly analyze the human resource management process, it is crucial to assess the entity's organizational structure, personnel practices, and delegation of authority and responsibility. Strong policies for employee recruitment, training, advancement, and remuneration are also essential. These policies should provide clear protocols for hiring and terminating personnel, wage rate determination, salary adjustments, and benefit provision. Additionally, section 12-9 should enumerate the risk factors that affect the human resource management process.

When conducting an audit, the auditor should take into account various factors such as economic conditions affecting payroll expenses, availability of skilled labor, and staff turnover rates. Moreover, in relation to payroll transactions, two tests of controls or substantive tests of transactions can be carried out using Cats software. Firstly, one can examine a random selection of payroll checks to verify the presence of an authorized time card. Secondly, one may trace a sample of time cards to the payroll register and verify the accuracy of postings to the payroll register for a sample of payroll checks.

The mathematical accuracy of a payroll check sample was recalculated. Cats are utilized for testing computer program logic to ensure proper calculations of gross pay, deductions, and net pay. The charges for a payroll check sample should be validated. Weaknesses in internal control can be identified by reviewing the narrative and flowchart on

the subsequent page. These weaknesses include: the individual and location responsible for securing employee time cards for workers both present and absent, checks should not be distributed to the foreman until the day workers are supposed to be paid, and an alternative person should oversee the signature stamp machine.