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Designing tests of controls

Design tests of controls, substantive tests of transactions, and analytical procedures for the following Apollo Shoes cycles:

o Payroll and Personnel Cycle
o Acquisition and Payment Cycle

150 words each.

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Payroll and Personnel:

The payroll and personnel cycle at Apollo Shoes should be designed to accomplish two objectives - detect nonexistent employees and deter payroll fraud. Nonexistent employees are significant because of the size of the employee base. Checks should be in place to verify that no two employees have the same address, and it needs to be thoroughly investigated when they do. In addition, the same type of checks should be performed for more than one employee having the same bank account, as noted on the personnel logs for pay deposits when standard checks are ...

Solution Summary

This solution explains the payroll and personnel cycle and the acquisition and payment cycle for the Apollo Shoes case.

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