FPC Domain 6: Audits Welcome to your FPC Domain 6: Audits 1. FPC: Audits Which document is essential for verifying the accuracy of employee wages and tax withholdings during a payroll audit? A. Employee satisfaction surveys B. Annual performance evaluations C. Payroll registers D. Customer feedback forms None 2. FPC: Audits In the context of payroll audits, what is the primary purpose of analyzing time and attendance records? A. To ensure compliance with labor regulations regarding overtime and breaks B. To assess employee productivity C. To plan future staffing needs D. To evaluate the efficiency of the payroll software None 3. FPC: Audits What is the significance of conducting a year-end audit in payroll? A. To prepare for employee performance reviews B. To reconcile payroll records with tax filings and contributions for accuracy C. To set goals for the payroll department for the next year D. To update the payroll software to the latest version None 4. FPC: Audits During a payroll audit, what is the importance of verifying the classification of employees as exempt or non-exempt? A. To determine eligibility for company stock options B. To ensure correct application of overtime rules and compliance with labor laws C. To assess employee satisfaction with their job classification D. To allocate office resources efficiently None 5. FPC: Audits What role does a third-party auditor play in a payroll audit? A. Implementing new payroll software systems B. Providing an independent review of payroll processes and compliance C. Training payroll staff on new tax laws D. Managing payroll processing on a day-to-day basis None 6. FPC: Audits Which regulation requires employers to maintain records of wages, hours, and other items for FLSA compliance? A. Sarbanes-Oxley Act B. Fair Labor Standards Act (FLSA) C. Affordable Care Act (ACA) D. Employee Retirement Income Security Act (ERISA) None 7. FPC: Audits In a payroll audit, why is it critical to examine the integration of payroll and human resources information systems (HRIS)? A. To evaluate the effectiveness of employee training programs B. To ensure accurate data transfer and compliance with data protection laws C. To determine the satisfaction level of employees with HR policies D. To assess the social media policy's impact on payroll processing None 8. FPC: Audits What is the purpose of verifying the accuracy of payroll tax filings during an audit? A. To prepare for employee benefits enrollment B. To ensure compliance with federal, state, and local tax regulations C. To facilitate the distribution of company newsletters D. To assess the need for new payroll software None 9. FPC: Audits How does analyzing payroll cost distribution contribute to a payroll audit? A. It helps in designing a new office layout B. It assists in evaluating payroll's impact on the overall budget and financial planning C. It guides the selection of employee uniforms D. It influences the choice of corporate travel agencies None 10. FPC: Audits What is the significance of reviewing payroll-related internal controls during an audit? A. To determine the frequency of office parties B. To ensure the security and integrity of payroll data and processes C. To assess the effectiveness of marketing strategies D. To plan the annual company retreat None 1 out of 10 Time is Up! Time's up
