Assignment ContentTxt book20-20 (Objectives 20-2, 20-3) Following are some of the tests of controls and substantive tests of transactions procedures often performed in the payroll and personnel cycle. (Each procedure is to be done on a sample basis or using audit software.)1. Reconcile the monthly payroll total for direct manufacturing labor with the labor cost distribution. 2. Examine the time card for the approval of a foreman. 3. Recompute hours on the time card and compare the total with the total hours for which the employee has been paid. 4. Perform a surprise payroll payoff and observe employees picking up and signing for their checks. 5. Compare the employee name, date, check number, and amounts on cancelled checks with the payroll journal. 6. Trace the hours from the employee time cards to job tickets to make sure that the total reconciles, and trace each job ticket to the job-cost record. 7. Use audit software to account for the sequence of payroll checks in the payroll journal. Required a. Identify whether each of the procedures is primarily a test of control or a substantive test of transactions. b. Identify the transaction-related audit objective(s) of each of the procedures.21-21 (Objectives 21-1, 21-3, 21-5, 21-6, 21-7) The Frist Corporation has the following internal controls related to inventory:1. Only authorized inventory warehousing personnel are allowed in inventory storage areas. 2. All inventory products are stored in warehousing areas that are segregated from other storage areas used to house equipment and supplies. 3. All inventory held on consignment at Frist Corporation is stored in a separate area of the warehouse. 4. The inventory purchasing system only allows purchases from pre-approved vendors. 5. The perpetual inventory system tracks the average number of days each inventory product number has been in the warehouse. 6. Microchips are embedded in each product and when inventory items are removed from the warehouse to shipping, radio-frequencies signal a deduction of inventory to the perpetual inventory system. 7. On a weekly basis, inventory accounting personnel take samples of inventory products selected from the perpetual inventory system and verify that the inventory is on-hand in the warehouse and that the quantities in the listing are correct. 8. On a weekly basis, inventory accounting personnel select inventory items on hand in the warehouse and verify that the item is included in the perpetual inventory listing at the correct amount. 9. The perpetual inventory system subtotals the quantity of inventory in the system and interfaces with the general ledger system on a daily basis to ensure quantities agree. 10. The perpetual inventory system will not accept inventory additions without the recording on a valid receiving report. For each of the internal controls:Required a. Identify the related transaction-related audit objective(s) affected by the control. b. Describe risks the control is designed to mitigate. c. Design a test of control to determine if the control is operating effectively.Respond in a min of 100 wordsHusam Hamwi The opening story in chapter 20 addressed an important part of auditing payroll/personnel cycle when these costs are involved in the company assets balance such as inventory and cost of developments. The payroll include all the payment for employees, government and agencies associated with employee deductions. The personnel cycle involve the human resources records from the date of hiring to the end date of the employee service, this include pay rate authorization, tax and benefits deductions, and timekeeping and payroll preparation. The link between the payroll and personnel cycle are needed to ensure that the employees record match the employee payment, and cash disbursed by the company. The auditor perform similar procedures to payroll and personnel cycle for those related to sales and cash receipts, therefore, the auditor must (obtain understanding of the client control, assess control risks, design and perform test of control, test of substantive transactions, and test of details of balances) The audit is less complicated than any other audit, because the cycle involve only payroll accounts. The auditor need to obtain understanding for the control of payroll and the client document and record before the test of control and test of substantive transactions. Most companies use third party payroll service company to perform payroll functions, for example: in my company we use ADP as third party who function payroll including timekeeping, and payroll processing, etc.To design and perform test of control, and test of substantive transactions, the auditors need to test control such separation of duties, agreement/disbursement schedules with other institutions, etc. All the auditing procedures must satisfy occurrence, completeness, accuracy, posting/summarizing, classification and timing.Respond in a min of 100 wordsAli Blackburn Top of FormTests of controls is a procedure that is done by an auditor that will see how effective the controls are within a company while substantive tests of transactions are examining the financial records for sign of error. When auditing the payroll and personnel cycle, you are basically ensuring that the balances affected are accurate and in accordance with the GAAP. The actual cycle begins at time of hire and ends at the time of termination with payment to employees/workers in between. Part of this process of internal controls for payroll includes time keeping. This is important mostly to an employee that is paid by the hour to have these records to be able to accurately be paid. Another control is ensuring that there is a cut off and they are recorded in the correct period and in the correct account. Most companies have their payroll go from week to week with it starting on the same day every week such as Sunday to Saturday. With the company we chose, Amazon, these tests of controls are a little different. Although they do have a payroll, it is managed through an online cloud-based payroll software called Workday.

Assume a role in a company (e.g., chief financial officer [CFO] or capital market analyst) or as an outside potential investor, and using the financial statements from Unit 1, complete the following:Perform 2 different types of ratio analysis.Which type of ratio is best suited for your chosen position?Show the equations for each of your ratios, and explain why you chose them.Responses to Other Students: Respond to at least 2 of your fellow classmates with at least a 100-word reply about their Primary Task Response regarding items you found to be compelling and enlightening. To help you with your discussion, please consider the following questions:What did you learn from your classmate's posting?What additional questions do you have after reading the posting?What clarification do you need regarding the posting?What differences or similarities do you see between your posting and other classmates' postings?400 word minimum in APA format