A weak internal control system allows a foreman to clock in daily for a fictitious employee and to approve the time card at the end of the payroll period.This fraud would be detected if other controls were in place,such as having an independent party
A)compare the date of the recorded cheque in the payroll journal with the date on the cancelled cheques and time cards.
B)foot the payroll journal and trace postings to the general ledger and the payroll master file.
C)recompute hours worked from time cards.
D)distribute paycheques.

Question

Quizplus · Accepted Answer

Distributing paychecks by an independent party would likely reveal the fraud because there would be an unclaimed paycheck, indicating a discrepancy that could lead to further investigation and uncover the fictitious employee. Other options focus on financial reconciliations and computations that might not directly expose the existence of a non-existent employee.

A Weak Internal Control System Allows a Foreman to Clock