If there is an error in wage rates,such errors can typically escalate into material amounts.What characteristic of the human resources and payroll cycle causes this?
A)many repeated transactions
B)the presence of independent verification
C)the use of outsourcing organizations for payroll
D)an error in the starting cheque number in a cheque run

Question

Quizplus · Accepted Answer

The characteristic of many repeated transactions in the human resources and payroll cycle increases the likelihood of errors in wage rates being made. Because the errors multiply across all the transactions, they can quickly escalate into material amounts. Independent verification and outsourcing organizations can help reduce the likelihood of errors, but they do not address the root cause of the issue. An error in the starting cheque number would not necessarily lead to wage rate errors.

If There Is an Error in Wage Rates,such Errors Can