Which of the following statements about payroll service bureaus is true?

1. Which of the following is not a task performed by the human resource management/payroll cycle?a. recruiting and hiring new employees b. trainingc. job assignment

d. access right management

d. access right management (Correct. This is not a task of the HRM/payroll cycle.)

2. Which of the following is not a general threat to the HRM/payroll cycle?a. inaccurate employee master data b. unauthorized disclosure of sensitive information c. the loss or destruction of master data

d. poor product design

d. poor product design (Correct. This causes no threat to the HRM/payroll cycle.)

3. Which document lists the current amount and year-to-date totals of gross pay, deductions,and net pay for one employee?a. payroll register b. time card c. paycheck

d. earnings statement

d. earnings statement (Correct. The earnings statement attached to each paycheck provides
the information listed.)

4. The HRM department is responsible for updating the payroll master database for internallyinitiated changes related to employment.a. True.

b. False

a. True. (Correct. Updating the payroll master database reflects various types of internallyinitiated changes: new hires, terminations, changes in pay rates, or changes in

discretionary withholdings.)

5. Use of a payroll service bureau or a PEO provides which of the following benefits?a. fewer staff needed to process payroll b. lower cost of processing payroll c. less need for developing and maintaining payroll tax expertise

d. all of the above

d. all of the above (Correct.)

6. Many companies use a _________ to record daily arrival and departure times of employees,who are paid on an hourly basis.a. time card b. time sheet c. punch card

d. entry card

a. time card (Correct. A document that records the employee’s arrival and departure times
for each work shift.)

7. Which department should have responsibility for authorizing pay-rate changes?a. timekeeping b. payroll c. HRM

d. accounting

c. HRM (Correct. HRM has no other role in the payroll process.)

8. To maximize effectiveness of internal controls over payroll, which of the following personsshould be responsible for distributing employee paychecks?a. departmental secretary b. payroll clerk c. controller

d. departmental supervisor

a. departmental secretary (Correct. This person has no other payroll duties so cannot conceal
theft of paychecks.)

9. Where should unclaimed paychecks be returned?a. HRM department b. cashier c. payroll department

d. absent employee’s supervisor

b. cashier (Correct. This permits funds to be quickly redeposited.)

10. Which of the following is an important supporting document to authorize the transfer offunds to the payroll bank account?a. earnings statement b. time card c. payroll register

d. W-2 form

c. payroll register (Correct. This document summarizes the amount to be paid to eachemployee and is sent to the accounts payable department for use in preparing a

disbursement voucher to authorize the transfer of funds to the payroll account.)