ISACA CISA: PRIMARY reason IS auditor would recommend that supervisor review exception reports before authorizing payments

Learn the correct answer and explanation for a common question on the ISACA CISA exam about payroll department IS audit and exception reports.

Question

As part of a payroll department IS audit, which of the following is the PRIMARY reason an IS auditor would recommend that a supervisor review exception reports before authorizing payments?

A. To identify unusual fluctuations or changes in any employee’s monthly pay
B. To evaluate gaps between employee performance and salary adjustments
C. To verify the accuracy of bank account information for payroll deposit
D. To collect statistical information in preparation for future pay scale reviews

Answer

A. To identify unusual fluctuations or changes in any employee’s monthly pay

Explanation

Exception reports are used to identify transactions or events that deviate from the normal or expected patterns. In a payroll department IS audit, an exception report would highlight any unusual or suspicious changes in an employee’s monthly pay, such as overpayments, underpayments, duplicate payments, or unauthorized payments. A supervisor should review these reports before authorizing payments to ensure that the payroll data is accurate and valid, and to prevent any fraud or errors that could affect the organization’s financial statements or reputation.

Reference

Isaca Certified Information Systems Auditor CISA certification exam practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the Isaca Certified Information Systems Auditor CISA exam and earn Isaca Certified Information Systems Auditor CISA certification.