CPP CPP Technology Applications 3 — Questions and Answers
Question 1: What is the purpose of a payroll system's audit log feature?
- To automatically calculate overtime
- To record all system changes with user, timestamp, and before/after values (Correct answer)
- To generate employee tax forms
- To schedule direct deposit runs
Correct answer: To record all system changes with user, timestamp, and before/after values
Audit logs create an immutable record of who changed what and when, supporting compliance, forensics, and internal controls.
Question 2: When a payroll vendor offers a SaaS (Software as a Service) model, which party is responsible for system maintenance and upgrades?
- The employer's IT department
- The payroll vendor (Correct answer)
- A third-party consultant
- The state tax authority
Correct answer: The payroll vendor
In a SaaS model, the vendor hosts, maintains, and upgrades the software; the employer only configures and uses it.
Question 3: Which process ensures that payroll data totals match between the payroll system and the general ledger before posting?
- Parallel testing
- Payroll reconciliation (Correct answer)
- User acceptance testing
- Data warehousing
Correct answer: Payroll reconciliation
Payroll reconciliation verifies that gross pay, deductions, taxes, and net pay totals agree between payroll and accounting systems.
Question 4: A company moves its payroll to a cloud-based system. Which shared responsibility model component remains the employer's obligation?
- Server hardware maintenance
- Network infrastructure management
- Employee data accuracy and access control configuration (Correct answer)
- Software patching and updates
Correct answer: Employee data accuracy and access control configuration
Even in cloud deployments, employers are responsible for data accuracy, user access controls, and configuring the system correctly.
Question 5: What is the function of a Payroll Control Report generated at the end of a payroll run?
- To submit taxes to the IRS electronically
- To summarize totals and exceptions so payroll staff can verify the run before funds are released (Correct answer)
- To generate employee W-2s automatically
- To update the HR system with new hire data
Correct answer: To summarize totals and exceptions so payroll staff can verify the run before funds are released
Control reports provide summary totals and flag exceptions, allowing payroll staff to review and approve the run before disbursement.
Question 6: In payroll technology, what does 'straight-through processing' (STP) mean?
- Processing payroll without any deductions
- Automated end-to-end processing with no manual intervention required (Correct answer)
- Running payroll on a straight schedule every two weeks
- Submitting taxes in a single batch filing
Correct answer: Automated end-to-end processing with no manual intervention required
STP automates the entire payroll workflow from data input through disbursement and reporting without human touchpoints.
Question 7: Which data encryption standard is most commonly referenced for protecting stored payroll data (data at rest)?
- MD5
- SHA-1
- AES-256 (Correct answer)
- Base64
Correct answer: AES-256
AES-256 (Advanced Encryption Standard with 256-bit keys) is the industry standard for encrypting sensitive data stored in databases.
CPP CPP Technology Applications 3
What is the purpose of a payroll system's audit log feature?