Which of the following internal control tests would be used in assessing that recorded payroll transactions are for the amount of time actually worked and at the proper pay rate,and that withholdings are properly calculated?
A)Foot the payroll journal and trace to the general ledger.
B)Prove the bank reconciliation.
C)Recompute gross pay.
D)Review the payroll journal for large or unusual amounts.

Question

Quizplus · Accepted Answer

Recomputing gross pay would involve verifying that the time worked and pay rates used are accurate, as well as ensuring that all applicable withholdings are properly calculated. Footing the payroll journal and tracing to the general ledger would help ensure that all payroll transactions are properly recorded and posted, but would not specifically test for the accuracy of the time worked and pay rates. Proving the bank reconciliation and reviewing the payroll journal for large or unusual amounts would also not directly test for the accuracy of the payroll calculations.

Which of the Following Internal Control Tests Would Be Used