Internal controls1. Any changes to employee master file information sincethe last payroll period are...Internal...

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Accounting

Internal controls
1. Any changes to employee master file information sincethe last payroll period are evaluated to ensure that they have beenproperly authorized by the appropriate personnel.
2. The output is reviewed for reasonableness prior todistribution to users.
Consider the four methods of testing the operating effectivenessof controls (inquiry, observation, document examination, andre-performance). For each of the preceding controls, provide anexample of how Mark's audit team might choose to test the operatingeffectiveness of the control using the four methods of test ofcontrols (e.g., how would the audit team use inquiry, observation,document examination, and re-performance to test control #1, thegeneration and review of the system log?). [Note: Not all types oftests of controls will be appropriate for testing all thecontrols.]

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Internal control is a process designed to provide reasonable assurance regarding the achievement of objectives in the following categories Effectiveness and efficiency of operations Reliability of financial reporting Compliance with applicable laws and regulations Internal control process Internal control consists of five interrelated components as follows Control or Operating environment Risk assessment Control activities Information and communication Monitoring Risk Identification A risk is anything that could jeopardize the achievement of an objective For each of the departments objectives risks should be identified Here we can explain the risk identification process in following steps What could go wrong How could we fail What must go right for us to succeed Where See Answer

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In: AccountingInternal controls1. Any changes to employee master file information sincethe last payroll period are...Internal controls1. Any changes to employee master file information sincethe last payroll period are evaluated to ensure that they have beenproperly authorized by the appropriate personnel.2. The output is reviewed for reasonableness prior todistribution to users.Consider the four methods of testing the operating effectivenessof controls (inquiry, observation, document examination, andre-performance). For each of the preceding controls, provide anexample of how Mark's audit team might choose to test the operatingeffectiveness of the control using the four methods of test ofcontrols (e.g., how would the audit team use inquiry, observation,document examination, and re-performance to test control #1, thegeneration and review of the system log?). [Note: Not all types oftests of controls will be appropriate for testing all thecontrols.]