AA Chapter 13 Questions

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1. Hassan Mattia says

   August 15, 2024 at 5:01 pm

   Hello, Ch13 Q5, most effective control over overtime payment, the correct answer says when approved by the manager, I don’t dispute that. But what if the manager has a favorite staff that (s)he manipulates the overtime for, for instance; the time clock card shows 5hrs overtime worked but the manager approves 6hrs over time worked, in this instance, which control is more effective in preventing this fraud? Thank you in advance.

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   • Kim Smith says

     August 17, 2024 at 10:29 am

     As fraud prevention and detection is management’s responsibility it would be for more senior management than the employees’ managers (or internal audit, if there is one) to make periodic independent checks. The external auditor would not presume such collusion as you suggest and would not ordinarily test for it.

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2. Famara says

   March 6, 2023 at 8:37 pm

   A good knowledge recall practise as I had read the related chapter sometime before taking this test!!

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