GROUP IV

HUMAN RESOURCES AND PAYROLL CYCLE

MEMBERS:
Celiz, Aira Noren
Dela Cruz, Cielo
Esquerdo, Joanna Rose
Juaneza, Randy Jr.
Molina, Lowela Jane
Parilla, Princess
Samoranos, Frances Marie

SELF-MADE QUESTIONS:

I.TRUE OR FALSE.

1. Human resources and payroll cycle covers the entity’s acquisition of services from

its employees or personnel. TRUE

2. Withholding taxes payable account is not affected in human resources and payroll

cycle. FALSE - affected

3. The daily time record (DTR) in the aforesaid cycle is initiated by the HR

Department. FALSE – User Department

4. The payroll register is distributed to Treasury Department and General Accounting.

TRUE

5. The User Department’s primary objective is to ensure that time records prepared

by employees represent actual hours worked during a day period. TRUE

 6. The Payroll Department’s primary objective is to provide reasonable assurance

that items related to payroll are appropriately classified and recorded in correct

accounting period at appropriate amounts. FALSE – Accounting Department

7. The primary objective of HR Department is to provide reasonable assurance that

all payroll disbursement is based on actual services rendered by employees.

FALSE – Treasury Department – disbursement

8. It is one of the HR Department’s activities to update cumulative employee earnings

records. FALSE – Payroll Department

9. Access, including initiating changes, to HR records shall be limited only to the HR

Department. TRUE

10. Payroll Department receives and reviews relevant payroll related information from

HR and user departments. TRUE

II. MULTIPLE CHOICE QUESTIONS

1. A form that shows payroll information which is capitalizable or can be

attributed to a particular job or customer job
a. Payroll register
b. Employee earnings record
c. Labor cost summary
d. HR records

2. The following activities are performed by the treasury department except:

a. Distributing checks to employees
b. Updating cumulative employee earnings records
c. Reviewing payroll register received
 d. Preparing daily summary which is to be forwarded to general
accounting

3. Receiving and reviewing relevant payroll related information from human

resource and user departments is usually the responsibility of
a. User department
b. Treasury department
c. Accounting department
d. Payroll department

4. Which of the following departments would be responsible for notifying the

payroll department of terminated employees in order to avoid these individuals
being included in subsequent payroll calculations?
a. HR Department
b. Treasury Department
c. Accounting Department
d. User Department

5. Which of the following best describes the type of transactions that are related
with payroll processing?
a. purchasing an inventory
b. compensating employee services
c. recruiting and processing new employees
d. receipt of customer order

6. Most companies disburse payroll through bank fund transfers from company's
payroll fund to individual employees payroll account. The one authorizing this
bank transfer should be the
a. Billing Department
b. Accounting Department
c. Payroll Department
 d. Treasury Department

7. Information not relevant to payroll calculation shall not be shared to other

departments. This control is performed by which of the following department?
a. HR Department
b. Sales Department
c. Billing Department
d. Payroll Department

8. What should be done with the unclaimed payroll checks in order to reduce the
likelihood of theft and fraud?
a. Keep it on the controller’s possession
b. Secured by someone with a higher position
c. Re-deposited to the bank
d. In the custody of a trusted officer

9. Which of the following statements is correct?

a. Daily summaries contain all information related to entity's employees
from the time they are hired up to their eventual termination
b. Payroll department should be associated with HR, Treasury and some
user department to assure the adequacy of duty segregation
c. Human resource and payroll cycle are part of the expenditure and
disbursement cycle
d. HR Department prepares check and have it signed by authorized
signatories

10. A department whose primary objective is to ensure that time records prepared
by employees represent actual hours worked during a pay period
a. Payroll Department
b. Receiving Department
 c. Accounting Department
d. User Department
III. IDENTIFICATION

1. This is a form that describes the number of hours worked by an employee

during a particular day covered by a pay period. Answer: Daily Time Record
2. These are the significant departments affecting the Human Resources and
Payroll Cycle. Answer: Expenditure and Disbursement and Distribution
3. It includes different categories of employee benefits that could significantly
affect major elements of financial statements. Answer: Payroll
4. Labor cost summary is distributed to _____. Answer: Inventory Accounting
5. This record shows the cumulative year-to-date summary of earnings and
deductions of every employee. Answer: Employee Earnings Record
6. This form is usually distributed to Treasury and General Accounting. Answer:
Payroll Register
7. Daily time record (DTR) is initiated by ______. Answer: User Department
8. ___________ has the primary objective of providing reasonable assurance
that all payroll disbursement is based on actual services rendered by the
employees. Answer: Treasury Department/Treasury Department-
Disbursement
9. __________ has the primary objective of providing reasonable assurance that
the payroll calculation in every pay period is valid. Answer: Payroll
Department
10. This department monitors and approves daily time records. Answer: User
Department