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Hi
If there is deficiency that calculations generated by system are not checked at all, so for its control would it be appropriate to say that system generated calculations should be reviewed by a responsible official before payment of salaries?
To simply “review” would not be a control. To confirm a calculation is correct it would have to be recalculated.
So can we write that system generated calculations should be recalculated by a senior responsible official and these calculations should be signed by him as approved before payment of salaries ?
And for its test of control can we write that ask for a sample of system generated calculations to see whether they have been by senior responsible official or not?
I don’t think a “senior responsible official” needs to be involved in so routine a task – just someone in the payroll department who didn’t process the payroll – though yes, a more senior person should then approve the payment. We could also be clear that only a sample of calculations needs to be done (as computer errors would most likely be systematic) – to recalculate an entire payroll would be unnecessary and could result in delayed payments.
Sir can you please fill the following blanks for me
Control:
A sample of system generated calculations should be recalculated by ______________ and these calculations should be signed by ___________ as approved before payment of salaries ?TOC:
Ask for a sample of system generated calculations to see whether they have been by______________________ or not?Gap 1: payroll supervisor – as a “senior member of the payroll team”
Gap 2: finance director
Gap 3: signed as approved
(Why do you not refer to the examiner’s answer?)Sir the control which we have suggested that “A sample of system generated calculations should be recalculated by payroll supervisor and these calculations should be signed by finance director as approved before payment of salaries”
In past paper answer the control suggested was that “A senior member of the payroll team should recalculate the gross to net pay workings for a sample of employees and compare their results to the output
from the payroll system. These calculations should be signed as approved before payments are made.”So if in exam the same deficiency comes again and if I do not wrote the past paper answer and instead write the answer which we have suggested so it means the same thing na? And we will get the full 1 mark for the control which we have suggested na?
It is quite unlikely that you will see exactly the same thing in the real exam as in a past exam question – and you would not be expected to quote verbatim what you’ve read in a past exam question. If your answer points have the same gist, as you suggest above, you will earn the marks.
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