审计学一种整合方法 阿伦斯 英文版 第12版 课后答案 Chapter 18 Solutions Manual.docx

审计学一种整合方法 阿伦斯 英文版 第12版 课后答案 Chapter 18 Solutions Manual.docx

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审计学一种整合方法阿伦斯英文版第12版课后答案Chapter18SolutionsManual

Chapter18

AuditofthePayrolland

PersonnelCycle

ReviewQuestions

18-1Generalledgeraccountsthatarelikelytobeaffectedbythepayrollandpersonnelcycleinmostauditsincludethefollowing:

CashDirectlabor

InventorySalaryexpense

ConstructioninprogressCommissionexpense

WagespayablePayrolltaxexpense

Payrolltaxeswithheld

Accruedpayrolltaxes

18-2Incompanieswherepayrollisasignificantportionofinventory,asinmanufacturingandconstructioncompanies,theimproperaccountclassificationofpayrollcansignificantlyaffectassetvaluationforaccountssuchasworkinprocess,finishedgoods,andconstructioninprocess.Forexample,ifthesalariesofadministrativepersonnelareincorrectlychargedtoindirectmanufacturingoverhead,theoverheadchargedtoinventoryonthebalancesheetcanbeoverstated.Similarly,iftheindirectlaborcostofindividualemployeesischargedtospecificjobsorprocesses,thevaluationofinventoryisaffectediflaborisimproperlyclassified.Whensomejobsarebilledonacostplusbasis,revenueandthevaluationofinventoryarebothaffectedbyimproperlyclassifyinglabortojobs.

18-3Fivetestsofcontrolsthatcanbeperformedforthepayrollandpersonnelcycleare:

1.Examinetimecardforindicationofapprovaltoensurethatpayrollpaymentsareproperlyauthorized.Thepurposeofthistestistodeterminethatrecordedpayrollpaymentsareforworkactuallyperformedbyexistingemployees（occurrence）.

2.Accountforasequenceofpayrollcheckstoensureexistingpayrollpaymentsarerecorded.Thepurposeofthistestistodeterminethatexistingpayrolltransactionsarerecorded（completeness）.

3.Examinetimecardstoensurethatrecordedpayrollpaymentsareforworkactuallyperformedbyexistingemployees.Thepurposeofthistestisthesameasinitem1above.

4.Comparepostingstothechartofaccountstoensurethatpayrolltransactionsareproperlyclassified.（Classification）

5.Observewhenrecordingtakesplacetoensurethatpayrolltransactionsarerecordedonatimelybasis.（Timing）

18-4Thepercentageoftotalaudittimeinthecycledevotedtoperformingtestsofcontrolsandsubstantivetestsoftransactionsisusuallyfargreaterinthepayrollandpersonnelcyclethanforthesalesandcollectioncyclebecausethereisrelativelylittleindependentthirdpartyevidence,suchasconfirmation,toverifytherelatedpayrollaccounts.Incontrast,theaccountsrelatedtothesalesandcollectioncyclecanusuallybeverifiedforthemostpartbyconfirmationsfromcustomers.Inaddition,inthesalesandcollectioncycle,verificationoftherealizabilityofreceivablesandsalescutofftestsareimportantandtime-consumingtasks.

18-5Theauditorshouldbeconcernedwithwhetherthehumanresourcesdepartmentisfollowingtheproperhiringandterminationprocedures.Anobviousreasonforthiswouldbetoensurethatthereareadequatesafeguardsagainsthiringandretainingincompetentanduntrustworthypeople.Theramificationsofhiringsuchpeoplecanrangefromsimpleinefficiencyandwastetooutrightfraudortheft.Moreimportantly,though,itisnecessaryfortheauditortoassurehimselforherselfthattheclientishiringandterminatingaccordingtooperationsstandardsandprocedures.Itisnecessarytoseeiftheinternalcontrolsareworkingasplannedbeforetheycanbeeffectivelyevaluated.Tosaythattheauditordoesn'tcarewhoishiredandwhoisfiredistosuggestthatheorshedoesn'tcareiftheinternalcontrolsworkaccordingtoanystandards.Failuretofollowproperterminationprocedurescouldleadtofraudulentpaymentsforworknotperformed.

18-6Totracearandomsampleofprenumberedtimecardstotherelatedpayrollchecksinthepayrollregisterandcomparethehoursworkedtothehourspaidistotestifthoseemployeeswhoworkedarebeingpaidfortheirtimeactuallyworked.Employeesarelikelytoinformmanagementiftheyarenotpaid,orunderpaid.Totracearandomsampleofpayrollchecksfromthepayrollregisterandcomparethehoursworkedtothehourspaidistotestiftherecordedpayrollpaymentsareforworkactuallyperformedbyexistingemployees.Thistest,ineffect,attemptstodiscovernonexistentemployeesorduplicatepayments,ifthereareany.Forthisreason,thesecondprocedureistypicallymoreimportanttotheauditofpayroll.

18-7Inauditingpayrollwithholdingandpayrolltaxexpense,theemphasisshouldnormallybeonevaluatingtheadequacyofthepayrolltaxreturnpreparationproceduresratherthanthepayrolltaxliability,becauseamajorreasonformisstatementsintheliabilityaccountisincorrectpreparationofthereturnsinthepast.Ifthepreparationproceduresareinadequate,andtheamountsdonotappearreasonable,thentheauditorshouldexpandhisorherworkandrecomputethewithholdingandexpenseamountstodeterminethattheproperamounthasbeenaccrued.Inaddition,theauditorshouldconsidertheamountofpenaltieswhichmaybeassessedforinadequatewithholdingsandincludetheseamountsintheaccrualiftheyaresignificant.

18-8Severalanalyticalproceduresforthepayrollandpersonnelcycleandmisstatementsthatmightbeindicatedbysignificantfluctuationsareasfollows:

ANALYTICALPROCEDURE

MISSTATEMENTTYPES

1.Comparisonofpayrollexpenseaccountstoamountsinprioryears.

Cutoffmisstatementsorimproperamountsrecordedinaperiod.

2.Directlabordividedbysalescomparedtoindustrystandardsinprioryears.

Cutoffmisstatementsoramountschargedtoimproperpayrollaccounts.

3.Commissionexpensedividedbysalescomparedtoindustrystandards,prioryears,orsalesagreements.

Failuretorecordcommissiononsales,orrecordingtheimpropercommissionamount.

4.Payrolltaxexpensedividedbysalariesandwagescomparedtoprioryearbalancesadjustedforchangesinthetaxrateandnotincludingofficers'salaries.

Failuretorecordpayrolltaxesorrecordingoftheimproperamount.

5.Comparisonofaccruedpayrollandpayrolltaxaccountstoprioryears.

Failuretorecordpayrollaccrualsorrecordingimproperamountsattheendofaperiod.

6.Thepercentageoflaborincludedinworkinprocessandfinishedgoodsinventoriescomparedtoprioryears.

Useofimproperlaborstandards,orclassificationmisstatements.

7.Analysisofdirectlaborvariances.

Useofimproperlaborstandards,orclassificationmisstatements.

18-9Anauditorshouldperformaudittestsprimarilydesignedtouncoverfraudinthepayrollandpersonnelcyclewhenheorshehasdeterminedthatinternalcontrolsaredeficient（ortheopportunityexistsformanagementtooverridetheinternalcontrols）orwhenthereareotherreasonstosuspectfraud.Auditproceduresthatareprimarilyforthedetectionoffraudinthepayrollandpersonnelcycleinclude:

1.Examinecancelledpayrollchecksforemployeename,authorizedsignature,andproperendorsement（especiallyforsecondendorsements）todiscoverchecksgoingtononexistentemployees.TheendorsementshouldbecomparedtosignaturesonW-4forms.

2.Traceselectedtransactionsrecordedinthepayrolljournalorlistingtothehumanresourcesdepartmentfilestodeterminewhethertheemployeeswereactuallyemployedduringtheperiod.

3.Selectseveralterminatedemployeesfrompayrollrecordstodeterminewhethereachformeremployeereceivedhisorherterminationpayinaccordancewithcompanypolicyandtodeterminethattheemployee'spaywasdiscontinuedonthedateoftermination.

18-9（continued）

4.Examinethesubsequentpayrollperiodsofterminatedemployeestoascertainthattheemployeesarenolongerbeingpaid.

5.Requestasurprisepayrollpayofftoobserveifanyunclaimedchecksresult,whichwillnecessitateextensiveinvestigation.

18-10ThePayrollMasterFileismaintainedforeachemployeeindicatingthegrosspayforeachpaymentperiod,deductionsfromthegrosspay,thenetpay,thechecknumber,andthedate.Thepurposeofthisrecordistoprovidedetailedinformationforfederalandstateincometaxpurposes,andtoserveasthefinalrecordofwhateachemployeewasactuallypaid.

TheW-2Formisissuedtoeachemployeeattheendofeachcalendaryearandindicateshisorhergrosspay,incometaxeswithheld,andFICAwithheldfortheyear.Inservingasasummaryoftheemployee'searningsrecord,theW-2formconvenientlyprovidesinformationnecessaryfortheemployeetofillouthisorherincometaxreturns.

APayrollTaxReturnistheformrequiredbyandsubmittedtothelocal,stateandfederalgovernmentsforthepaymentofwithheldtaxesandtheemployer'sportionofFICAtaxesandstateandfederalunemploymentcompensationtaxes.

18-11Wheretheprimaryobjectiveistodetectfraud,theauditorwillexaminethefollowingsupportingdocumentsandrecords:

1.Cancelledpayrollchecksforemployeename,authorizedsignatureandproperendorsement,watchingspecificallyforunusualorrecurringsecondendorsements.

2.Payrolljournalorlisting,tracingtransactionstothepersonnelfilestodeterminewhethertheemployeeswereactuallyemployedduringthepayrollperiod.

3.Payrolljournalorlistingandindividualpayrollrecords,selectingterminatedemployeestodeterminewhethereachterminatedemployeereceivedhisorherterminationpayinaccordancewithcompanypolicyandwhethereachemployeewaspaidinthesubsequentpayrollperiod.

4.Payrollchecks,observingeachemployeeasheorshepicksupandsignsforhisorhercheck.

5.Timecards,testingthemforreasonablenessorobservingwhethertheyarebeingpunchedbytheproperemployees.

18-12T