Internal controls
1. Any changes to employee master file information since
the last payroll period are evaluated to ensure that they have been
properly authorized by the appropriate personnel.
2. The output is reviewed for reasonableness prior to
distribution to users.
Consider the four methods of testing the operating effectiveness
of controls (inquiry, observation, document examination, and
re-performance). For each of the preceding controls, provide an
example of how Mark's audit team might choose to test the operating
effectiveness of...