The Multiple Choice Questions Blog

A deficiency has been identified in the following area of the company’s wages system as outlined below.

For the stated deficiency, select the risk which is MOST likely to arise.

• Regular reconciliations of the wages and salaries control account are not performed.

Select ONE answer:

1. Payments might be made incorrectly
2. Pay might not be recorded correctly in the general ledger
3. The company may pay employees who have left
4. The various elements of pay might not be calculated correctly

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct – The deficiency arises after the calculation of the payroll, so although it might expose errors in that calculation it is more likely to expose errors in the amount paid/general ledger.
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

A deficiency has been identified in the following area of the company’s wages system, as outlined below.

For the stated deficiency, select the risk which is MOST likely to arise.

• Regular reconciliations of the payroll to timesheets are not performed.

Select ONE answer:

1. Pay might not be recorded correctly in the general ledger
2. Payments might be made incorrectly
3. The company may pay employees who have left
4. The various elements of pay might not be calculated correctly

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct – The deficiency arises when calculating pay (i.e., ensuring that the amounts on the payroll reflect the amount recorded on the timesheets), so would not directly affect the general ledger.

This work is licensed under a Creative Commons Attribution 4.0 International License.

A deficiency has been identified in the following area of the company’s wages system, as outlined below.

For the stated deficiency, select the risk which is MOST likely to arise.

-Details of wages are not regularly checked in the personnel file.

Select ONE answer:

1. Pay might not be recorded correctly in the general ledger
2. Payments might be made incorrectly
3. The company may pay employees who have left
4. The various elements of pay might not be calculated correctly

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct – The deficiency arises when calculating wages and salaries: a failure to check wages to the personnel file could result in an employee who has left (which would be recorded on the file) being included on the payroll. The recording of pay in the general ledger would not be directly affected by this.
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

Which ONE of the following control procedures WILL reduce the risk of unauthorised disclosure of payroll data?

Select ONE answer:

1. Exception reporting of high amounts of net pay
2. Encryption of data
3. Back-up procedures
4. Independent review of payroll

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct – Access controls and encryption of data will reduce the risk of unauthorised disclosure. Exception reporting and an independent review of the payroll, would help identity unauthorised changes to payroll information. Back-up procedures would help in the protection of company data.
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

Which ONE of the following control procedures WILL reduce the risk of unauthorised disclosure of payroll data?

Select ONE answer:

1. Access controls
2. Exception reporting of high amounts of net pay
3. Back-up procedures
4. Independent review of payroll

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct – Access controls and encryption of data will reduce the risk of unauthorised disclosure. Exception reporting and an independent review of the payroll, would help identity unauthorised changes to payroll information. Back-up procedures would help in the protection of company data.
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.