As a high fraud-risk area, payroll data is used to conduct fraud tests. Which of the following is a fraud test for ghost employees?
A) Comparison of wages earned to employee job classification
B) Cumulative payroll journal
C) Payroll processed for employees before their start dates or after their termination dates
D) Comparison of timecard data to payroll data to identify variances

Question

Quizplus · Accepted Answer

Payroll processed for employees before their start dates or after their termination dates is a fraud test for ghost employees because it helps identify payments made to nonexistent employees or those no longer employed by the company, which is a common tactic in payroll fraud schemes.

As a High Fraud-Risk Area, Payroll Data Is Used to Conduct