CPP CPP Payroll Accounting & Reporting 3

Question 1

Segregation of duties in payroll processing means:

Accepted Answer

Having different individuals handle payroll preparation, approval, and disbursement

Answer

Paying employees in different currencies based on role

Answer

Filing payroll taxes in multiple jurisdictions

Answer

Processing payroll on alternating weekly and biweekly schedules

Question 2

A 'ghost employee' in payroll fraud refers to:

Accepted Answer

A fictitious person added to payroll to divert funds to the fraudster

Answer

An employee who works a fully remote schedule

Answer

A temporary contractor paid in cash off the books

Answer

An employee currently on unpaid leave

Question 3

Which control best detects payroll overpayments or unauthorized pay increases?

Accepted Answer

Regularly comparing actual payroll costs to budgeted amounts and investigating variances

Answer

Requiring employees to sign paper timesheets

Answer

Using electronic timekeeping systems exclusively

Answer

Mailing W-2 forms directly to employees' home addresses

Question 4

The purpose of a payroll suspense account is to:

Accepted Answer

Temporarily hold unresolved payroll discrepancies pending correction and proper coding

Answer

Permanently hold uncashed payroll checks

Answer

Record employer payroll tax deposit confirmations

Answer

Track each employee's garnishment balance

Question 5

During a payroll audit, which document best verifies that pay rates are properly authorized?

Accepted Answer

Personnel/HR records documenting management-approved pay rates

Answer

The payroll register showing current rates

Answer

The employee's direct deposit authorization form

Answer

The quarterly Form 941 filing

Question 6

Year-end payroll reconciliation should confirm that:

Accepted Answer

Total W-2 Box 1 wages equal annual gross wages adjusted for pre-tax deductions and non-taxable benefits

Answer

All employees received annual performance reviews

Answer

All state payroll tax accounts are closed for the year

Answer

All employees are enrolled in at least one benefit plan