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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. Determine whether the cabinet keys are secured properly.
B. Determine whether an approved list of voided checks exists.
C. Vouch a sample of items on bank reconciliations to supporting documentation.
D. Examine whether the payroll manager approves the reconciliations of ledgers.
Answer: C

NEW QUESTION: 2
Which of the following are two most effective ways of protection against data breaches in the cloud environment?
A. Encryption and Honeypot
B. Contracts and SLAs
C. Multifactor Authentication and Encryption
D. Data Loss Prevention techniques and Web Application Firewall
Answer: C
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. Apparent scope limitation
B. Ability to establish consistency in application of accounting principles between years
C. Integrity of management
D. Adequacy of the preplanned audit program
Answer: D

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Answer:
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