Which of the following best describes proper internal control over payroll?
A)Preparation of the payroll must be under the control of the personnel department.
B)Confidentiality of employee payroll data should be carefully protected to prevent fraud.
C)Duties of hiring,payroll computation,and payment to employees should be segregated.
D)Payment by cheque to employees should be replaced with payment by automatic deposits.

Question

Quizplus · Accepted Answer

Segregation of duties is an important internal control principle in payroll processing. This means that different employees should be responsible for hiring, payroll computation, and payment to employees. This helps prevent one individual from having too much control over the process and reduces the risk of fraud. Options A and D are not necessarily required for proper internal control over payroll, and option B is only one aspect of ensuring confidentiality, but not the only significant control.

Which of the Following Best Describes Proper Internal Control Over