AICPA CPA-Auditing Exam - Topic 1 Question 7 Discussion

Actual exam question for AICPA's CPA-Auditing exam

Question #: 7
Topic #: 1

In a computerized payroll system environment, an auditor would be least likely to use test data to test controls related to:

AMissing employee numbers.

BProper approval of overtime by supervisors.

CTime tickets with invalid job numbers.

DAgreement of hours per clock cards with hours on time tickets.

Show Suggested Answer

Suggested Answer: B

Choice 'b' is correct. Proper approval of overtime by supervisors is least likely to be used by the auditor in a 'test data' test of controls because it is information generally not recorded in the computer.

Choices 'a', 'c', and 'd' are incorrect. Test data is data (with a predetermined result) that is run through the client's computer system. The auditor creates one transaction of each type of valid and invalid conditions in which the auditor is interested and runs them through the client's processing system. The following are recorded in the computer and are likely candidates for 'test data' tests of controls.

A . Missing employee numbers.

C . Time tickets with invalid job numbers.

D . Agreement of hours per clock card with hours on time tickets.

by Charlene at May 04, 2022, 03:09 PM

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Alexis

3 months ago

A is about missing data, but B is about control!

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Antonette

3 months ago

Wait, are we sure about B? Seems like it could be relevant too.

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Eve

3 months ago

I agree with B, test data won't help with approval processes.

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Kate

4 months ago

I think C is the right answer, invalid job numbers are a big deal!

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Lorean

4 months ago

Definitely B, approvals are more about process than data.

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Jenelle

4 months ago

I studied a similar question about payroll controls. I think agreement of hours on tickets with clock cards might involve more direct review rather than test data.

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Fannie

4 months ago

If I remember right, test data is usually used for checking things that can be systematically processed, like invalid job numbers. So, I guess I'm leaning towards approval processes as the odd one out.

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Malissa

4 months ago

I'm not sure, but I feel like missing employee numbers might still be tested for accuracy? Maybe not as a control, but it does seem significant.

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Kenia

5 months ago

I think test data might be less relevant for proper approval of overtime by supervisors. That seems more about policies than system errors.

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Nettie

5 months ago

This seems like a simple true/false question, but I want to make sure I don't miss any details. I'll read through it carefully before selecting an answer.

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Beckie

5 months ago

Wait, I'm a bit confused. Does this mean there's some kind of network device or security measure in place? I'll have to review my notes on that.

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Darrin

5 months ago

Okay, I think I've got this. The question is asking where the organization administrator can view the network information, so it's likely going to be at the organization level rather than the virtual machine or vApp level. I'll go with Option C.

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Genevive

5 months ago

I thought a cross-mapping would be necessary for understanding gaps, but wasn't sure if it's the best foundation as a starting point. I guess it depends on how mature the current systems are?

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