CPP Domain 6: Audits Welcome to your CPP Domain 6: Audits 1. CPP: Audits When preparing for a payroll audit, what is the most critical initial step to ensure accuracy in the audit process? A. Reviewing the latest payroll software updates B. Verifying the accuracy of employee time records C. Confirming the reconciliation of payroll accounts D. Updating employee payroll records None 2. CPP: Audits During a payroll audit, what is the importance of auditing the payroll tax reports filed with government agencies? A. To ensure compliance with labor laws B. To verify the accuracy of tax withholdings and submissions C. To confirm employee eligibility for employment D. To evaluate the efficiency of the payroll system None 3. CPP: Audits What is a key reason for conducting a year-end payroll audit? A. To prepare for employee evaluations B. To ensure accurate year-end tax reporting C. To plan the next year's payroll budget D. To update payroll software None 4. CPP: Audits In a payroll audit, how should auditors address discrepancies found between payroll records and bank statements? A. Adjust the bank statements to match payroll records B. Investigate and resolve the discrepancies C. Ignore minor discrepancies D. Update payroll records to match bank statements None 5. CPP: Audits What role does the analysis of overtime payments play in a payroll audit? A. To determine employee satisfaction B. To assess the accuracy and compliance of overtime calculations C. To evaluate the performance of employees D. To plan future staffing needs None 6. CPP: Audits When auditing payroll, why is it important to verify the classification of employees as exempt or non-exempt? A. To ensure proper scheduling B. To confirm compliance with wage and hour laws C. To facilitate performance reviews D. To streamline payroll processing None 7. CPP: Audits How does testing the integrity of payroll data contribute to a payroll audit? A. It ensures the payroll system is user-friendly B. It verifies the reliability and accuracy of payroll information C. It confirms the efficiency of payroll processing times D. It assesses the security of the payroll system None 8. CPP: Audits Why is it important to review the policies for payroll adjustments during an audit? A. To ensure adjustments are made for performance bonuses B. To verify that adjustments are authorized and documented C. To determine the frequency of adjustments D. To assess the impact of adjustments on employee morale None 9. CPP: Audits What is the significance of auditing direct deposit authorizations in a payroll audit? A. To confirm that employees are satisfied with their payment method B. To ensure that direct deposits are processed by the bank correctly C. To verify that employees have authorized direct deposit and the account details are correct D. To assess the cost-effectiveness of direct deposit None 10. CPP: Audits During a payroll audit, how should unauthorized overtime be addressed? A. By automatically approving all unauthorized overtime B. By investigating and documenting the cause and approval process C. By deducting the amount from the employee's next paycheck D. By ignoring it if it is a one-time occurrence None 1 out of 10 Time is Up! Time's up
