Test Bank Chapter 9 Human Resources And Payroll Processes - Digital Test Bank | Accounting Info Systems 1e by Arline A. Savage. DOCX document preview.
Accounting Information Systems, 1e (Savage)
Chapter 9 Human Resources and Payroll Processes
1) Human resources are one of the most important
A) outputs from a business.
B) inputs into a business.
C) collection processes in a business.
D) conversion processes in a business.
Diff: 1
Learning Objective: 9.1 Explain the relationship between human resources and payroll.
Section Reference: How are Human Resources and Payroll Related?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
2) The human resources department activities are part of the
A) acquisition and payment processes.
B) conversion processes.
C) marketing, sales, and collection processes.
D) information processes.
Diff: 1
Learning Objective: 9.1 Explain the relationship between human resources and payroll.
Section Reference: How are Human Resources and Payroll Related?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
3) The human resources (HR) business function is responsible for all employees and employee-related operations, including
A) recruiting and hiring employees.
B) training and developing employees.
C) transitioning employees.
D) All of these answer choices are correct.
Diff: 1
Learning Objective: 9.1 Explain the relationship between human resources and payroll.
Section Reference: How are Human Resources and Payroll Related?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
4) Which of the following activities would be a responsibility of the human resources business function?
A) Processing payroll
B) Accounting for benefit withholdings
C) Financing of inputs
D) Performance evaluations
Diff: 1
Learning Objective: 9.1 Explain the relationship between human resources and payroll.
Section Reference: How are Human Resources and Payroll Related?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
5) What kind of human resource (HR) model allows for certain administrative tasks to be performed by a third party?
A) Outsourced benefits administration
B) Insourced benefits administration
C) HR service sharing
D) HR benefits accounting
Diff: 1
Learning Objective: 9.1 Explain the relationship between human resources and payroll.
Section Reference: How are Human Resources and Payroll Related?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
6) Along with raw materials, which of the following is also considered an input to a business?
A) Customers
B) Employees
C) Sales
D) Operations
Diff: 1
Learning Objective: 9.1 Explain the relationship between human resources and payroll.
Section Reference: How are Human Resources and Payroll Related?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
7) Which of the following would not be considered an input to a business?
A) Financial resources
B) Human resources
C) Equipment
D) Design
Diff: 1
Learning Objective: 9.1 Explain the relationship between human resources and payroll.
Section Reference: How are Human Resources and Payroll Related?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
8) The Human Resources (HR) department is responsible for determining salaries and benefits. Which of these activities is related to that function?
A) Determining paid time off
B) Training and development
C) Determining promotions
D) Updating employee data
Diff: 2
Learning Objective: 9.1 Explain the relationship between human resources and payroll.
Section Reference: How are Human Resources and Payroll Related?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
9) Mario works in the human resources (HR) department of the Jimmy Sub Corporation. Mario's focus in HR involves employee hiring and transition. Which of the following employee activities will require Mario's involvement for the HR department?
A) April attends company orientation.
B) May undergoes an annual performance review.
C) June receives a promotion and a raise.
D) July gets married and needs to update her W4.
Diff: 3
Learning Objective: 9.1 Explain the relationship between human resources and payroll.
Section Reference: How are Human Resources and Payroll Related?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
10) Viktoria suggests that the Well Market human resources (HR) department needs to become more innovative in retaining employees. They suggest that remote work or rotations might entice employees to maintain their status at Well Market and reduce the costs associated with hiring and training new staff. To administer either program, Well Market's HR department needs to either hire more staff or find a way to manage more work with the same sized team. Choose the best option for Viktoria and the Well Market HR team?
A) The HR team could work more hours and hope that no one gets burned out.
B) The HR team could hire new people and try the new programs once the new team members are trained, which could take months.
C) The HR team could outsource some administrative tasks and focus on the retention programs themselves.
D) The HR team could not change anything and hope that things work out.
Diff: 3
Learning Objective: 9.1 Explain the relationship between human resources and payroll.
Section Reference: How are Human Resources and Payroll Related?
AACSB: Analytic
Bloom's: Analysis
AICPA: AC: Systems and Process Management
11) Which of the following human resources activities is frequently outsourced?
A) Benefits administration
B) Annual performance reviews
C) Involuntary termination
D) Maintaining employee master data
Diff: 1
Learning Objective: 9.1 Explain the relationship between human resources and payroll.
Section Reference: How are Human Resources and Payroll Related?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
12) Which relationship between human resources (HR) and payroll is best for business?
A) HR and payroll both deal with employees and should be one department.
B) HR and payroll have distinctive functions and should be separate.
C) Payroll deals with paychecks. HR deals with employee benefits.
D) Payroll is processed by the HR department.
Diff: 2
Learning Objective: 9.1 Explain the relationship between human resources and payroll.
Section Reference: How are Human Resources and Payroll Related?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
13) Payroll departments perform which activities?
A) Wage calculation
B) Commission earnings
C) Employee pay
D) All of these answers are correct.
Diff: 1
Learning Objective: 9.1 Explain the relationship between human resources and payroll.
Section Reference: How are Human Resources and Payroll Related?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
14) Payroll for a business should be processed in which department?
A) Accounting
B) Human resources
C) Sales
D) All of these answers are correct.
Diff: 1
Learning Objective: 9.1 Explain the relationship between human resources and payroll.
Section Reference: How are Human Resources and Payroll Related?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
15) Which department owns the data used for payroll processing?
A) Accounting
B) Human resources
C) Sales
D) All of these answers are correct.
Diff: 1
Learning Objective: 9.1 Explain the relationship between human resources and payroll.
Section Reference: How are Human Resources and Payroll Related?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
16) If the accounting department handles payroll, why would a company need a human resources (HR) department?
A) HR personnel know and understand labor laws.
B) HR personnel are trained to handle sensitive issues.
C) HR personnel are trained to deal with and reduce the likelihood of HR legal issues.
D) All of these answers are correct.
Diff: 2
Learning Objective: 9.1 Explain the relationship between human resources and payroll.
Section Reference: How are Human Resources and Payroll Related?
AACSB: Analytic
Bloom's: Analysis
AICPA: AC: Systems and Process Management
17) Employee compensation involves
A) the HR department.
B) tax regulations.
C) pre-tax expense accounts.
D) All of these answers are correct.
Diff: 2
Learning Objective: 9.1 Explain the relationship between human resources and payroll.
Section Reference: How are Human Resources and Payroll Related?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
18) Which of the following is an example of a deduction from an employee's payroll check?
A) Federal and state taxes
B) Insurance premiums
C) Retirement contributions
D) All of these answers are correct.
Diff: 2
Learning Objective: 9.1 Explain the relationship between human resources and payroll.
Section Reference: How are Human Resources and Payroll Related?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
19) Which department should an employee consult to ask questions about withholdings on a paycheck?
A) Accounting
B) Human resources
C) Payroll
D) All of these answers are correct.
Diff: 2
Learning Objective: 9.1 Explain the relationship between human resources and payroll.
Section Reference: How are Human Resources and Payroll Related?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
20) Compensating employees is a business process that results in
A) an economic exchange of resources.
B) no change in the accounting information system.
C) changes to the HR database not the information system.
D) All of these answers are correct.
Diff: 2
Learning Objective: 9.1 Explain the relationship between human resources and payroll.
Section Reference: How are Human Resources and Payroll Related?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
21) Payroll accounting includes contributions to pre-tax accounts that can be spent on specific expenses. Which of the following is an example of a use for pre-tax account?
A) Child care
B) Meals
C) Entertainment
D) PTO
Diff: 2
Learning Objective: 9.1 Explain the relationship between human resources and payroll.
Section Reference: How are Human Resources and Payroll Related?
AACSB: Analytic
Bloom's: Analysis
AICPA: AC: Systems and Process Management
22) Jonah Brothers Entertainment received a notice of legal action related to a job applicant that was not hired based on his thought that the interviewer asked illegal questions during the interview that caused the interviewer to discriminate against the applicant. What HR activity area should be responsible for making sure this issue does not occur again?
A) Updating and maintaining employee data
B) Monitoring and evaluation
C) Recruiting and hiring employees
D) Training and developing employees
Diff: 2
Learning Objective: 9.1 Explain the relationship between human resources and payroll.
Section Reference: How are Human Resources and Payroll Related?
AACSB: Analytic
Bloom's: Analysis
AICPA: AC: Systems and Process Management
23) JIT Technologies promoted Jorge during his last performance evaluation. The promotion also included a raise. What HR related activity is involved with Jorge's good news?
A) Monitoring and evaluation
B) Transitioning employees
C) Payroll processing
D) All of these answers are correct.
Diff: 2
Learning Objective: 9.1 Explain the relationship between human resources and payroll.
Section Reference: How are Human Resources and Payroll Related?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
24) Which term is accurately described as the process of establishing new employees in the company's systems and helping them quickly adapt to their positions and the company?
A) Employee acquisition
B) Employee onboarding
C) Employee conversion
D) Employee hiring
Diff: 1
Learning Objective: 9.2 Evaluate the employee onboarding process.
Section Reference: How Are New Employees Hired?
AACSB: Analytic
Bloom's: Knowledge
AICPA: AC: Systems and Process Management
25) At what point does employee onboarding begin?
A) First day on the job
B) At the interview
C) When a job offer is extended
D) When a position is advertised
Diff: 1
Learning Objective: 9.2 Evaluate the employee onboarding process.
Section Reference: How Are New Employees Hired?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
26) Which statement concerning employee onboarding is FALSE?
A) Employee onboarding is the process of establishing new employees in the company's systems and helping them quickly adapt to their positions and the company.
B) Employee onboarding includes the administrative process of establishing the new employee in the payroll and benefits systems.
C) Employee onboarding includes ensuring new hires are comfortable, facilitating socialization, and following up with the new-hire.
D) Employee onboarding starts on the employee's first day on the job and continues through the new-hire's first few weeks or months.
Diff: 2
Learning Objective: 9.2 Evaluate the employee onboarding process.
Section Reference: How Are New Employees Hired?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
27) A successful employee onboarding program reduces what risks for a company?
A) Decreased productivity
B) Training expenses
C) Diminished company reputation
D) All of these answer choices are correct.
Diff: 1
Learning Objective: 9.2 Evaluate the employee onboarding process.
Section Reference: How Are New Employees Hired?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
28) Poor employee onboarding leads to high employee turnover. What risks are associated with high employee turnover?
A) Expenses of training an ever-changing workforce
B) Challenges associated with negative reputation from employees and past employees
C) Decreased productivity from employees who are not integrated in the company
D) All of these answer choices are correct.
Diff: 2
Learning Objective: 9.2 Evaluate the employee onboarding process.
Section Reference: How Are New Employees Hired?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
29) What department is responsible for the employee onboarding process?
A) Human resources
B) Department manager
C) Payroll
D) All of these answer choices are correct.
Diff: 1
Learning Objective: 9.2 Evaluate the employee onboarding process.
Section Reference: How Are New Employees Hired?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
30) Many large accounting firms onboard groups of new hires together. The onboarding process includes several weeks of training together. In what way can this type of onboarding be beneficial to the firm?
A) New hires create relationships with one another that can support them throughout their career.
B) New hires learn about the corporate culture during the training process.
C) New hires become comfortable and establish relationships, thus increasing retention.
D) All of these answer choices are correct.
Diff: 2
Learning Objective: 9.2 Evaluate the employee onboarding process.
Section Reference: How Are New Employees Hired?
AACSB: Analytic
Bloom's: Analysis
AICPA: AC: Systems and Process Management
31) Which statement concerning the evaluation of employee onboarding processes is FALSE?
A) To evaluate an onboarding process, you need to understand how responsibilities are divided among responsible parties.
B) An onboarding process flowchart is all that must be reviewed as it denotes the order of the steps in the process and who is responsible.
C) A thorough evaluation includes talking to employees to find out if the process flowchart is a true reflection of operations.
D) The evaluation of an employee onboarding process includes a review of process documentation and employee interviews.
Diff: 2
Learning Objective: 9.2 Evaluate the employee onboarding process.
Section Reference: How Are New Employees Hired?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
32) As a risk advisory consultant, you are asked to review a company's employee onboarding process. What should you ask for to begin your evaluation?
A) Process flowchart
B) Onboarding documentation
C) Appointments to meet with employees
D) All of these answer choices are correct.
Diff: 2
Learning Objective: 9.2 Evaluate the employee onboarding process.
Section Reference: How Are New Employees Hired?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
33) Companies mitigate risks associated with employee onboarding by implementing and enforcing
A) external payroll administration.
B) control activities.
C) background checks.
D) All of these answer choices are correct.
Diff: 2
Learning Objective: 9.2 Evaluate the employee onboarding process.
Section Reference: How Are New Employees Hired?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
34) Which of the following statements about control activities related to employee onboarding is FALSE?
A) The cost of employee onboarding control activities should not exceed the benefit.
B) Business processes like HR, payroll, and onboarding do not have a master list of controls.
C) Companies should establish and document policies and procedures for hiring.
D) Control activities focus on fraud prevention to prevent financial loss for the company.
Diff: 2
Learning Objective: 9.2 Evaluate the employee onboarding process.
Section Reference: How Are New Employees Hired?
AACSB: Analytic
Bloom's: Analysis
AICPA: AC: Systems and Process Management
35) As a risk advisory consultant, you are asked to evaluate and recommend improvements for the employee onboarding process for Swiftly Tech. During your evaluation you discover that Swiftly Tech's employee data was part of a data breach from a third-party background check provider. What action do you recommend that Swiftly Tech take?
A) Swiftly Tech should forgo background checks to avoid sharing confidential employee data with other companies.
B) Swiftly Tech should require background check providers to have their own internal controls to ensure confidentiality and security of data.
C) Swiftly Tech should require employees to acquire and provide their own background check data.
D) All of these answer choices are correct.
Diff: 3
Learning Objective: 9.2 Evaluate the employee onboarding process.
Section Reference: How Are New Employees Hired?
AACSB: Analytic
Bloom's: Evaluation
AICPA: AC: Systems and Process Management
36) As a risk advisory consultant, you are asked to evaluate and recommend improvements for the employee onboarding process for Swiftly Tech. During your evaluation you discover that Swiftly Tech's new hires often fail to understand company policies. What action do you recommend that Swiftly Tech take?
A) Swiftly Tech should include an employment agreement in the new hire package that requires that the employee sign that the job description and employee's responsibilities are understood.
B) Swiftly Tech should require that new hires attend an employee orientation that includes a review of the employee handbook before beginning their job duties.
C) Swiftly Tech should have new hires acknowledge receipt and understanding of company policies.
D) All of these answer choices are correct.
Diff: 3
Learning Objective: 9.2 Evaluate the employee onboarding process.
Section Reference: How Are New Employees Hired?
AACSB: Analytic
Bloom's: Evaluation
AICPA: AC: Systems and Process Management
37) As a risk advisory consultant, you are asked to evaluate and recommend improvements for the employee onboarding process for Swiftly Tech. During your evaluation you discover that Swiftly Tech's payroll department adds employees based on an email from the HR department. The lack of controls could result in payroll fraud. What do you recommend that Swiftly Tech do to avoid potential payroll fraud?
A) Swiftly Tech could require completed new hire documentation paperwork prior to employee record creation in the payroll system.
B) Swiftly Tech could require that all employee data be secured and changes are only made by authorized individuals.
C) Swiftly Tech could schedule frequent independent reviews of new hire data in the system to ensure validity and accuracy.
D) All of these answer choices are correct.
Diff: 3
Learning Objective: 9.2 Evaluate the employee onboarding process.
Section Reference: How Are New Employees Hired?
AACSB: Analytic
Bloom's: Evaluation
AICPA: AC: Systems and Process Management
38) What role in a company should be responsible for ensuring that employee onboarding processes are efficient and effective?
A) Payroll manager
B) Hiring department manager
C) Employee relations manger
D) Human resources manager
Diff: 1
Learning Objective: 9.2 Evaluate the employee onboarding process.
Section Reference: How Are New Employees Hired?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
39) Which employee onboarding action may prevent high employee turnover?
A) Individual online training for employees
B) Onboard training and engagement with employees after their onboarding
C) Emails including policies and procedures
D) A first day on the job that gets the employee started in their assigned role
Diff: 2
Learning Objective: 9.2 Evaluate the employee onboarding process.
Section Reference: How Are New Employees Hired?
AACSB: Analytic
Bloom's: Analysis
AICPA: AC: Systems and Process Management
40) What kind of risk might employee social events prevent?
A) High employee turnover
B) Employee policy violations
C) Payroll fraud
D) Low productivity
Diff: 2
Learning Objective: 9.2 Evaluate the employee onboarding process.
Section Reference: How Are New Employees Hired?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
41) A violation of employment laws for hiring could result in lawsuits, fines, or reputational damage. What kind of control activity might a company initiate to prevent such a risk?
A) Establish a policy that employees complete a new hire package prior to their first day.
B) Establish a policy that provides for a comprehensive onboarding week for new hires.
C) Establish a policy that only the HR department extend offer letters for employment.
D) Establish and maintain a comprehensive employee agreement for all employees.
Diff: 2
Learning Objective: 9.2 Evaluate the employee onboarding process.
Section Reference: How Are New Employees Hired?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
42) Which statement concerning employee onboarding analytics is TRUE?
A) Employee onboarding analytics focuses on providing context to the mass of historical data generated in the employee onboarding process.
B) Employee onboarding analytics includes reports on the number of new hires and number of hiring violations detected.
C) Employee onboarding analytics focuses on providing a dashboard of data for HR management to review daily.
D) Employee onboarding analytics includes reports on internal control exception reports, hiring issues, and compliance fines and penalties.
Diff: 2
Learning Objective: 9.5 How Can Human Resource and Payroll Data Be Used to Identify Risks?
Section Reference: Reporting and Insights
AACSB: Analytic
Bloom's: Analysis
AICPA: AC: Systems and Process Management
43) What type of employee onboarding analytics may identify issues in the onboarding process?
A) Analysis of employee master data
B) Analysis of post-onboarding surveys completed by hiring managers
C) Analysis of post-onboarding surveys completed by new hires
D) Analysis of the percentage of tenured employees versus new hires in each department
Diff: 2
Learning Objective: 9.5 How Can Human Resource and Payroll Data Be Used to Identify Risks?
Section Reference: Reporting and Insights
AACSB: Analytic
Bloom's: Analysis
AICPA: AC: Systems and Process Management
44) Which of the following is an example of employee onboarding analytics?
A) Third-party background checks on new hires
B) Employee policy receipt acknowledgement and understanding certification
C) Ongoing training and engagement with employees
D) Comparison of new hire compensation to departmental budgets to identify variances
Diff: 1
Learning Objective: 9.5 How Can Human Resource and Payroll Data Be Used to Identify Risks?
Section Reference: Reporting and Insights
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
45) What type of employee onboarding analytics may identify fictitious employees?
A) Analysis of employee master data for nonmatching information
B) Analysis of post-onboarding surveys completed by hiring managers
C) Analysis of post-onboarding surveys completed by new hires
D) Analysis of the percentage of tenured employees versus new hires in each department
Diff: 2
Learning Objective: 9.5 How Can Human Resource and Payroll Data Be Used to Identify Risks?
Section Reference: Reporting and Insights
AACSB: Analytic
Bloom's: Analysis
AICPA: AC: Systems and Process Management
46) What type of employee onboarding analytics may yield identification of skillset gaps among new hires?
A) Analysis of employee master data for nonmatching information
B) Analysis of post-onboarding surveys completed by hiring managers
C) Analysis of post-onboarding surveys completed by new hires
D) Analysis of the percentage of tenured employees versus new hires in each department
Diff: 2
Learning Objective: 9.5 How Can Human Resource and Payroll Data Be Used to Identify Risks?
Section Reference: Reporting and Insights
AACSB: Analytic
Bloom's: Analysis
AICPA: AC: Systems and Process Management
47) Which business process manages the removal of an employee from active employment status?
A) Employee onboarding
B) Employee violation
C) Employee termination
D) Employee offboarding
Diff: 1
Learning Objective: 9.3 Evaluate the employee termination process.
Section Reference: What Happens When an Employee is Terminated?
AACSB: Analytic
Bloom's: Knowledge
AICPA: AC: Systems and Process Management
48) Which of the following is the responsibility of HR during the employee termination process?
A) HR answers questions from the departing employee.
B) HR answers questions from the departing employee's managers.
C) HR minimizes potential damage during the termination process.
D) All of these answer choices are correct.
Diff: 1
Learning Objective: 9.3 Evaluate the employee termination process.
Section Reference: What Happens When an Employee is Terminated?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
49) For which of the following reasons should HR be involved with the process of firing an employee?
A) HR is involved to ensure that the situation is handled properly, doesn't escalate, and to mitigate the risk of a retaliatory ex-employee filing a lawsuit.
B) HR is involved to prevent the employee manager from having to face the ex-employee and answer questions about why the firing occurred.
C) HR is involved to ensure that the ex-employee leaves immediately and has no access to speak with employees about any issues.
D) HR is involved to prevent the ex-employee not having access to sabotage the company or steal company property or information.
Diff: 2
Learning Objective: 9.3 Evaluate the employee termination process.
Section Reference: What Happens When an Employee is Terminated?
AACSB: Analytic
Bloom's: Analysis
AICPA: AC: Systems and Process Management
50) Public accounting firms often require terminated employees to exit on the same day as a resignation is submitted, even in the event of a voluntary termination. Why is the same-day exit necessary?
A) Public accounting firms are required by accounting regulations to not allow employees to work after submitting a resignation.
B) Public accounting firms must prevent conflicts of interest if the employee has already accepted a job offer from a direct competitor.
C) Public accounting firms are required by HR standards to interview and escort ex-employees from the building and immediately terminate electronic access.
D) Public accounting firms must prevent ex-employees from discussing any company matters with others at the company after termination.
Diff: 2
Learning Objective: 9.3 Evaluate the employee termination process.
Section Reference: What Happens When an Employee is Terminated?
AACSB: Analytic
Bloom's: Analysis
AICPA: AC: Systems and Process Management
51) Which of the following events constitutes an employee termination?
A) Retirement
B) Death
C) Layoff
D) All of these answers are correct.
Diff: 1
Learning Objective: 9.3 Evaluate the employee termination process.
Section Reference: What Happens When an Employee is Terminated?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
52) What department is involved in employee termination administrative processes?
A) Human resources
B) Ex-employee's department
C) Information technology
D) All of these answer choices are correct.
Diff: 1
Learning Objective: 9.3 Evaluate the employee termination process.
Section Reference: What Happens When an Employee is Terminated?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
53) Which of the following is the best definition of severance?
A) Severance is the process followed by HR when an employee resigns from a position.
B) Severance is the policy that managers follow regarding employee resignations.
C) Severance is the process of handling corporate layoffs.
D) Severance is the pay package for employees involved in layoffs not related to employee performance.
Diff: 1
Learning Objective: 9.3 Evaluate the employee termination process.
Section Reference: What Happens When an Employee is Terminated?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
54) What occurs during an exit interview?
A) Employees meet with HR to apply and interview for a different position within the company.
B) Employees meet with their former manager to go over details of current projects.
C) Employees meet with HR to discuss reasons for leaving and post-termination benefits.
D) Employees meet with their former manager to share details about retained employees' conduct.
Diff: 2
Learning Objective: 9.3 Evaluate the employee termination process.
Section Reference: What Happens When an Employee is Terminated?
AACSB: Analytic
Bloom's: Analysis
AICPA: AC: Systems and Process Management
55) At what point in the employee termination process is data collected from the exiting employee?
A) Submission of resignation letter
B) HR notification
C) HR exit interview
D) No data is collected.
Diff: 1
Learning Objective: 9.3 Evaluate the employee termination process.
Section Reference: What Happens When an Employee is Terminated?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
56) For what reasons do employee terminations present risks to a company?
A) Employee onboarding is time-consuming and expensive.
B) Changing employees decreases productivity.
C) Ex-employees could retaliate with legal or defamatory actions.
D) All of these answer choices are correct.
Diff: 2
Learning Objective: 9.3 Evaluate the employee termination process.
Section Reference: What Happens When an Employee is Terminated?
AACSB: Analytic
Bloom's: Analysis
AICPA: AC: Systems and Process Management
57) What type of control activity is implemented to prevent a terminated employee from using proprietary company information elsewhere?
A) All employee issued technology, including storage devices, are collected at the exit interview.
B) Company credit cards are collected from the employee, paid, and closed at the end of the billing cycle.
C) Employee access to the system is disabled immediately upon termination.
D) Terminated employees sign a noncompete agreement during the exit interview.
Diff: 2
Learning Objective: 9.3 Evaluate the employee termination process.
Section Reference: What Happens When an Employee is Terminated?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
58) What type of control activity is implemented to prevent unauthorized expenses related to terminated employees?
A) All employee issued technology, including storage devices, are collected at the exit interview.
B) Company credit cards are collected from the employee, paid, and closed at the end of the billing cycle.
C) Employee access to the system is disabled immediately upon termination.
D) Terminated employees sign a noncompete agreement during the exit interview.
Diff: 2
Learning Objective: 9.3 Evaluate the employee termination process.
Section Reference: What Happens When an Employee is Terminated?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
59) What type of HR control activity is implemented to prevent a wrongful termination lawsuit?
A) Managers must complete an HR-authorized employee termination checklist and submit to HR.
B) Company credit cards are collected from the employee, paid, and closed at the end of the billing cycle.
C) Employee access to the system is disabled immediately upon termination.
D) Terminated employees sign a noncompete agreement during the exit interview.
Diff: 2
Learning Objective: 9.3 Evaluate the employee termination process.
Section Reference: What Happens When an Employee is Terminated?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
60) What type of control activity is implemented to prevent malicious actions against company systems and data?
A) All employee issued technology, including storage devices, are collected at the exit interview.
B) Company credit cards are collected from the employee, paid, and closed at the end of the billing cycle.
C) Employee access to the system is disabled immediately upon termination.
D) Terminated employees sign a noncompete agreement during the exit interview.
Diff: 2
Learning Objective: 9.3 Evaluate the employee termination process.
Section Reference: What Happens When an Employee is Terminated?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
61) What type of control activity is implemented to prevent financial losses related to fraudulent payments to terminated employees?
A) All employee issued technology, including storage devices, are collected at the exit interview.
B) Company credit cards are collected from the employee, paid, and closed at the end of the billing cycle.
C) Employee access to the system is disabled immediately upon termination.
D) HR conducts an independent review of the payroll administrator's employee records status to validate it is no longer active.
Diff: 2
Learning Objective: 9.3 Evaluate the employee termination process.
Section Reference: What Happens When an Employee is Terminated?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
62) Highly valuable data is collected during the exit interview. What types of employee termination reports might be valuable for review?
A) Number of completed employee terminations
B) Number of each type of employee terminations
C) Turnover rate
D) All of these answer choices are correct.
Diff: 2
Learning Objective: 9.3 Evaluate the employee termination process.
Section Reference: What Happens When an Employee is Terminated?
AACSB: Analytic
Bloom's: Analysis
AICPA: AC: Systems and Process Management
63) Henri joined a public accounting firm as an intern for the summer. Henri's final project involved evaluating the firm's employee termination control activities with a goal of developing additional control activities to prevent unnecessary reputation damages for the firm. Which of the following control activities might Henri suggest?
A) Complete an HR-authorized employee termination checklist and submit to HR.
B) Require HR presence at firings to ensure proper procedures and mitigate risks.
C) Remove employee's authority to act on behalf of the firm and conduct firm business.
D) All of these answer choices are correct.
Diff: 3
Learning Objective: 9.3 Evaluate the employee termination process.
Section Reference: What Happens When an Employee is Terminated?
AACSB: Analytic
Bloom's: Evaluation
AICPA: AC: Systems and Process Management
64) Employee termination analytics may lead to improvements in business processes and departmental operations. What type of analytics may identify ongoing corporate issues?
A) Trend analysis of reasons provided during exit interviews for voluntary terminations
B) Comparison of length of employment to feedback from onboarding activities
C) Time series analysis of seasonal trends in voluntary terminations
D) Drilling into employee termination reports by department and supervisor
Diff: 2
Learning Objective: 9.5 How Can Human Resource and Payroll Data Be Used to Identify Risks?
Section Reference: Reporting and Insights
AACSB: Analytic
Bloom's: Analysis
AICPA: AC: Systems and Process Management
65) Employee termination analytics may lead to improvements in business processes and departmental operations. What type of analytics may identify potential issues with specific managers?
A) Trend analysis of reasons provided during exit interviews for voluntary terminations
B) Comparison of the length of employment to feedback from onboarding activities
C) Time series analysis of seasonal trends in voluntary terminations
D) Drilling into employee termination reports by department and supervisors
Diff: 2
Learning Objective: 9.5 How Can Human Resource and Payroll Data Be Used to Identify Risks?
Section Reference: Reporting and Insights
AACSB: Analytic
Bloom's: Analysis
AICPA: AC: Systems and Process Management
66) Employee termination analytics may lead to improvements in business processes and departmental operations. What type of analytics may identify issues between the onboarding experience and retention?
A) Trend analysis of reasons provided during exit interviews for voluntary terminations
B) Comparison of length of employment to feedback from onboarding activities
C) Time series analysis of season trends in voluntary terminations
D) Drilling into employee termination reports by department and supervisors
Diff: 2
Learning Objective: 9.5 How Can Human Resource and Payroll Data Be Used to Identify Risks?
Section Reference: Reporting and Insights
AACSB: Analytic
Bloom's: Analysis
AICPA: AC: Systems and Process Management
67) Employee termination analytics may lead to improvements in business processes and departmental operations. What type of analytics may identify issues related to employees leaving after annual reviews, promotions, or bonuses?
A) Trend analysis of reasons provided during exit interviews for voluntary terminations
B) Comparison of length of employment to feedback from onboarding activities
C) Time series analysis of seasonal trends in voluntary terminations
D) Drilling into employee termination reports by department and supervisors
Diff: 2
Learning Objective: 9.5 How Can Human Resource and Payroll Data Be Used to Identify Risks?
Section Reference: Reporting and Insights
AACSB: Analytic
Bloom's: Analysis
AICPA: AC: Systems and Process Management
68) Machiko joined the HR department at Takano Accounting. Takano has asked Machiko to evaluate the well-documented employee termination process for Takano. Machiko has identified that despite Takano being a public accounting firm, the company often sets exit interviews and final employment dates several days employees voluntarily resign. Takano may be at risk of
A) employee retaliation based on wrongful termination.
B) the employee acting on a conflict of interest in favor of their new employer.
C) increased turnover rates by high-performing employees.
D) employee records remaining in the payroll system after termination.
Diff: 3
Learning Objective: 9.3 Evaluate the employee termination process.
Section Reference: What Happens When an Employee is Terminated?
AACSB: Analytic
Bloom's: Synthesis
AICPA: AC: Systems and Process Management
69) Josephine joined a Big 4 accounting firm as an intern for the summer. Josephine's final project involved evaluating the firm's employee termination control activities with a goal of developing additional control activities to prevent unnecessary financial losses for the firm. Which of the following control activities might Josephine suggest that will prevent financial loss?
A) Clear all advances and employee receivables prior to the employee's final paycheck.
B) Company credit cards are collected from the employee, paid, and closed at the end of the billing cycle.
C) Remove employee's authority to act on behalf of the firm and conduct firm business.
D) All of these answer choices are correct.
Diff: 3
Learning Objective: 9.3 Evaluate the employee termination process.
Section Reference: What Happens When an Employee is Terminated?
AACSB: Analytic
Bloom's: Evaluation
AICPA: AC: Systems and Process Management
70) The primary purpose of a company is to
A) create products.
B) pay their employees.
C) please shareholders.
D) maximize profits.
Diff: 1
Learning Objective: 9.4 Assess the payroll processing process.
Section Reference: How Do We Compensate Employees for Their Work?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
71) What is the primary determinate of the balance between the amount of time an employee spends earning a salary and the satisfaction received during leisure time?
A) Salary amount
B) Time off
C) Job satisfaction
D) Personal fulfillment
Diff: 2
Learning Objective: 9.4 Assess the payroll processing process.
Section Reference: How Do We Compensate Employees for Their Work?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
72) What is at the heart of a company's payroll business process?
A) Payroll accounting
B) Employees and their time worked
C) Human resources
D) Accounting system
Diff: 1
Learning Objective: 9.4 Assess the payroll processing process.
Section Reference: How Do We Compensate Employees for Their Work?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
73) What business process calculates wages to compensate employees with their entitled pay?
A) Human resources
B) Accounting
C) Payroll
D) Enterprise resource planning
Diff: 1
Learning Objective: 9.4 Assess the payroll processing process.
Section Reference: How Do We Compensate Employees for Their Work?
AACSB: Analytic
Bloom's: Knowledge
AICPA: AC: Systems and Process Management
74) At what phase of maturity would a company be that has implemented a HR and payroll module in a fully integrated enterprise resource planning system?
A) Phase 1 — Limited
B) Phase 2 — Informal
C) Phase 3 — Defined
D) Phase 4 — Optimized
Diff: 1
Learning Objective: 9.4 Assess the payroll processing process.
Section Reference: How Do We Compensate Employees for Their Work?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
75) Which of the following is NOT a factor to determine a company's degree of integration in HR and payroll systems?
A) Cost of an enterprise-wide system
B) Size of business
C) Reduction of data redundancy
D) Ability to generate user buy-in
Diff: 2
Learning Objective: 9.4 Assess the payroll processing process.
Section Reference: How Do We Compensate Employees for Their Work?
AACSB: Analytic
Bloom's: Analysis
AICPA: AC: Systems and Process Management
76) Which off the following is a factor to consider when determining a company's degree of integration in HR and payroll systems?
A) Support from management
B) Size of the business
C) Ability to generate user buy-in
D) All of these answer choices are correct.
Diff: 2
Learning Objective: 9.4 Assess the payroll processing process.
Section Reference: How Do We Compensate Employees for Their Work?
AACSB: Analytic
Bloom's: Analysis
AICPA: AC: Systems and Process Management
77) Which of the following is an advantage to integrating the information system for HR and payroll processing?
A) Reducing data redundancies
B) Improving data quality
C) Quick access to data
D) All of these answer choices are correct.
Diff: 2
Learning Objective: 9.4 Assess the payroll processing process.
Section Reference: How Do We Compensate Employees for Their Work?
AACSB: Analytic
Bloom's: Analysis
AICPA: AC: Systems and Process Management
78) Which of the following is NOT an advantage to integrating the information system for HR and payroll processing?
A) Creating a single source for HR and payroll data
B) Minimizing efforts for data collection
C) Ability to generate user buy-in
D) Providing streamlined access to data
Diff: 2
Learning Objective: 9.4 Assess the payroll processing process.
Section Reference: How Do We Compensate Employees for Their Work?
AACSB: Analytic
Bloom's: Analysis
AICPA: AC: Systems and Process Management
79) Which of the following statements concerning payroll is TRUE?
A) Payroll is a straightforward process of distributing wages to employees.
B) Payroll processing occurs at third-party vendors so it is not under control of the company.
C) Payroll and HR data remain separate to allow for data control via duplication.
D) Payroll is not as straightforward as simply distributing the hourly rate or annual salary to employees.
Diff: 2
Learning Objective: 9.4 Assess the payroll processing process.
Section Reference: How Do We Compensate Employees for Their Work?
AACSB: Analytic
Bloom's: Analysis
AICPA: AC: Systems and Process Management
80) Payroll includes
A) distributing annual salary and hourly wages to employees.
B) several financial accounting journal entries.
C) calculation and payment of payroll taxes.
D) All of these answer choices are correct.
Diff: 2
Learning Objective: 9.4 Assess the payroll processing process.
Section Reference: How Do We Compensate Employees for Their Work?
AACSB: Analytic
Bloom's: Analysis
AICPA: AC: Systems and Process Management
81) Gross pay is comprised of
A) salaries and wages expenses.
B) salaries and payroll tax expenses
C) salaries, payroll taxes, and employee benefits.
D) All of these answer choices are correct.
Diff: 2
Learning Objective: 9.4 Assess the payroll processing process.
Section Reference: How Do We Compensate Employees for Their Work?
AACSB: Analytic
Bloom's: Analysis
AICPA: AC: Systems and Process Management
82) Employee payroll deductions become
A) expenses to the company.
B) liabilities to the company until paid to third parties.
C) employee benefits expense.
D) paid-time off liabilities.
Diff: 2
Learning Objective: 9.4 Assess the payroll processing process.
Section Reference: How Do We Compensate Employees for Their Work?
AACSB: Analytic
Bloom's: Analysis
AICPA: AC: Systems and Process Management
83) Which of the following statements concerning payroll taxes is TRUE?
A) Employees are responsible for 100% of employee payroll taxes.
B) Employers are responsible for 100% of employee payroll taxes.
C) Employees and employers share the costs of Social Security and Medicare taxes equally.
D) Employees pay the cost for unemployment taxes.
Diff: 2
Learning Objective: 9.4 Assess the payroll processing process.
Section Reference: How Do We Compensate Employees for Their Work?
AACSB: Analytic
Bloom's: Analysis
AICPA: AC: Systems and Process Management
84) Employee vacation and paid-time-off benefits accrual include a debit to an expense account and a credit to a(n)
A) liability account.
B) asset account.
C) income account.
D) other expense account.
Diff: 2
Learning Objective: 9.4 Assess the payroll processing process.
Section Reference: How Do We Compensate Employees for Their Work?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
85) Payroll expenses reduce
A) net income on the income statement.
B) stockholder's equity on the balance sheet.
C) stockholder's equity on the statement of stockholder's equity.
D) All of these answer choices are correct.
Diff: 2
Learning Objective: 9.4 Assess the payroll processing process.
Section Reference: How Do We Compensate Employees for Their Work?
AACSB: Analytic
Bloom's: Analysis
AICPA: AC: Systems and Process Management
86) What type of processing accumulates transactions into groups and processes them at regular intervals?
A) Real-time
B) Journal
C) Batch
D) Group
Diff: 1
Learning Objective: 9.4 Assess the payroll processing process.
Section Reference: How Do We Compensate Employees for Their Work?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
87) What type of payroll processing control is designed to prevent unauthorized payroll transactions being processed?
A) Reconcile payroll and employee records.
B) Complete a payroll processing checklist for each pay period.
C) Controller reviews and signs payroll checks.
D) Reconcile payroll withholdings and the general ledger accounts.
Diff: 3
Learning Objective: 9.4 Assess the payroll processing process.
Section Reference: How Do We Compensate Employees for Their Work?
AACSB: Analytic
Bloom's: Evaluation
AICPA: AC: Systems and Process Management
88) What type of payroll processing control is designed to avoid fines associated with noncompliance with statutory requirements?
A) Reconcile payroll and employee records.
B) Complete a payroll processing checklist for each pay period.
C) Controller reviews and signs payroll checks.
D) Reconcile payroll withholdings and the general ledger accounts.
Diff: 3
Learning Objective: 9.4 Assess the payroll processing process.
Section Reference: How Do We Compensate Employees for Their Work?
AACSB: Analytic
Bloom's: Evaluation
AICPA: AC: Systems and Process Management
89) What type of payroll processing control is designed to avoid inaccurate payroll data and inappropriate payments to employees?
A) Reconcile payroll and employee records.
B) Complete a payroll processing checklist for each pay period.
C) Controller reviews and signs payroll checks.
D) Reconcile payroll withholdings and the general ledger accounts.
Diff: 3
Learning Objective: 9.4 Assess the payroll processing process.
Section Reference: How Do We Compensate Employees for Their Work?
AACSB: Analytic
Bloom's: Evaluation
AICPA: AC: Systems and Process Management
90) As a high fraud-risk area, payroll data is used to conduct fraud tests. Which of the following is a fraud test for ghost employees?
A) Comparison of wages earned to employee job classification
B) Cumulative payroll journal
C) Payroll processed for employees before their start dates or after their termination dates
D) Comparison of timecard data to payroll data to identify variances
Diff: 2
Learning Objective: 9.5 How Can Human Resource and Payroll Data Be Used to Identify Risks?
Section Reference: Reporting and Insights
AACSB: Analytic
Bloom's: Analysis
AICPA: AC: Systems and Process Management
91) What type of payroll fraud is analyzed using the comparison of current payroll period wages with previous payroll periods?
A) Unauthorized payroll adjustments
B) Ghost employees
C) Unauthorized payroll deposits
D) Duplicate employees
Diff: 2
Learning Objective: 9.5 How Can Human Resource and Payroll Data Be Used to Identify Risks?
Section Reference: Reporting and Insights
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
92) What role in the company should be the control owner to restrict access to employee master data to a limited number of individuals segregated from payroll processing?
A) Payroll manager
B) HR manager
C) Accounts payable manager
D) Controller
Diff: 2
Learning Objective: 9.4 Assess the payroll processing process.
Section Reference: How Do We Compensate Employees for Their Work?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
93) Yakomoto hired Sumi to review ways the company could use their existing human resource (HR) department, whom all have great relationships with the existing employees, to help Yakomoto grow. Explain how Sumi and the HR department might use an outsourced model to focus on Yakomoto's growth.
Diff: 3
Learning Objective: 9.1 Explain the relationship between human resources and payroll.
Section Reference: How are Human Resources and Payroll Related?
AACSB: Analytic
Bloom's: Synthesis
AICPA: AC: Systems and Process Management
94) International Machine (IM) recently discovered internal fraud related to payroll checks. Currently, IM has the HR department process payroll checks since they possess the data required to accurately calculate the checks. What change would you recommend to IM to prevent payroll check fraud in the future?
Diff: 3
Learning Objective: 9.1 Explain the relationship between human resources and payroll.
Section Reference: How are Human Resources and Payroll Related?
AACSB: Analytic
Bloom's: Evaluation
AICPA: AC: Systems and Process Management
95) A regional accounting firm with locations in 7 states hired Ana as an HR risk advisory consultant. The firm is concerned with the high employee turnover rate in some areas in certain states and has asked Ana to evaluate the situation. List the steps that Ana should take.
1) Ana should request a process flowchart for the employee onboarding process.
2) Ana should review the process flowchart to see how it works and who the responsible parties are for each step in the process.
3) Ana should interview employees and responsible parties to determine if the flowchart reflects the actual processes are being followed.
4) Ana should evaluate control activities for each step in the process.
Diff: 2
Learning Objective: 9.2 Evaluate the employee onboarding process.
Section Reference: How Are New Employees Hired?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
96) A regional accounting firm with locations in 7 states hired Ana as an HR risk advisory consultant. The firm is concerned with the high employee turnover rate in some areas in certain states and has asked Ana to evaluate the situation. Ana has discovered there is no specified employee onboarding process. List the included elements Ana should provide to the firm for the employee onboarding process.
2) Employees receive a new hire package that includes an employment agreement and employment policies.
3) The firm should provide a robust orientation program to each employee about the company and its culture.
4) The HR department should coordinate opportunities to socialize, ongoing training, and engagement after onboarding.
Diff: 3
Learning Objective: 9.2 Evaluate the employee onboarding process.
Section Reference: How Are New Employees Hired?
AACSB: Analytic
Bloom's: Synthesis
AICPA: AC: Systems and Process Management
97) Why is it important for a manager to know and follow HR policies and procedures when terminating an employee?
Diff: 2
Learning Objective: 9.3 Evaluate the employee termination process.
Section Reference: What Happens When an Employee is Terminated?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
98) Jameson, an HR employee at TYR Enterprises, recently completed training in data analytics. Jameson wants to use his new skillset to analyze employee exit interview data to discover trends that could be discussed during the quarterly HR trainings conducted with departmental managers. What types of employee termination analytics could Jameson perform that would be beneficial to share with departmental managers?
Diff: 3
Learning Objective: 9.5 How Can Human Resource and Payroll Data Be Used to Identify Risks?
Section Reference: Reporting and Insights
AACSB: Analytic
Bloom's: Synthesis
AICPA: AC: Systems and Process Management
99) Discuss the advantages for a company to pursue a higher level of maturity and integrate the information systems for payroll processes.
Diff: 2
Learning Objective: 9.4 Assess the payroll processing process.
Section Reference: How Do We Compensate Employees for Their Work?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
100) Evaluate the journal entry below:
Employee Benefits Expense | 5,000 | |
Employee Health Insurance Payable | 5,000 |
When the company pays the health insurance premium to the provider, what journal entry occurs in the information system?
Employee Health Insurance Payable | 5,000 | |
Cash | 5,000 |
Diff: 3
Learning Objective: 9.4 Assess the payroll processing process.
Section Reference: How Do We Compensate Employees for Their Work?
AACSB: Analytic
Bloom's: Evaluation
AICPA: AC: Systems and Process Management
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