[Jay]

NINJA Question –

In an automated payroll processing environment, a department manager substituted the time card for a terminated employee with a time card for a fictitious employee. The fictitious employee had the same pay rate and hours worked as the terminated employee. The best control technique to detect this action using employee identification numbers would be a:

A. batch total.

B. record count.

C. hash total.

D. subsequent check.

The answer is Hash Total and I don’t know why. I chose Record count…

The solution explanation is:

Assuming that the substitution takes place after the time cards have been batched for processing, the best control technique listed would be the hash total. The hash total is a type of batch control total. It is the summation of a quantitative but noninformational data field; for example, check numbers, purchase order numbers, and employee identification numbers.

Can anyone explain why the answer is Hash total in another way??

Thanks.

REG 82 (08/08/15)

[Missy]

Well the problem is they don't tell you to assume the falsified record had been submitted until after the batch. But say the batch was for check numbers 1-5, the batch hash total is 15 (1+2+3+4+5) and if the falsified employee gets check number 6 the check hash total is 21 (1+2+3+4+5+6)

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[Jay]

I got it now.. I assumed it was processed and didn't catch the part of the question that said “Using employee identification numbers” part.

Thanks mla. Happy Holidays.

REG 82 (08/08/15)

[Author]

Replies