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A payroll clerk enters payroll transactions into the general ledger. The staff accountant reconciles the payroll ledgers. The payroll manager issues the manual payroll checks. The checks are maintained in a locked cabinet.
The chief financial officer secures the keys to the cabinet. The payroll clerk distributes the manual checks.
The payroll manager reconciles the bank statements monthly. Which of the following audit steps best addresses the risk of fraud in the payroll process?
A. Vouch a sample of items on bank reconciliations to supporting documentation.
B. Determine whether an approved list of voided checks exists.
C. Examine whether the payroll manager approves the reconciliations of ledgers.
D. Determine whether the cabinet keys are secured properly.
Answer: A

NEW QUESTION: 2
Which of the following are two most effective ways of protection against data breaches in the cloud environment?
A. Multifactor Authentication and Encryption
B. Contracts and SLAs
C. Data Loss Prevention techniques and Web Application Firewall
D. Encryption and Honeypot
Answer: A
Explanation:
Multifactor Authentication and Encryption are most effective protect mechanisms against data breaches in cloud environment. Other options do form part of overall security strategy in cloud but Option D is the strongest contender for the answer.

NEW QUESTION: 3
In assessing whether to accept a client for an audit engagement, a, auditor should consider the:
A. Ability to establish consistency in application of accounting principles between years
B. Integrity of management
C. Adequacy of the preplanned audit program
D. Apparent scope limitation
Answer: C

NEW QUESTION: 4
DRAG DROP


Answer:
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