Which of the following controls prevents error and helps to ensure that only authorized wages are paid by the payroll service provider?
A)duplicate signatures required on payments to the Receiver General
B)use of an imprest payroll account for the payment of all payroll payments
C)independent approval of the payroll journal prior to payroll payment release
D)reconciliation of the payroll imprest bank account on a timely basis

Question

Quizplus · Accepted Answer

Independent approval of the payroll journal prior to payroll payment release ensures that only authorized wages are paid by the payroll service provider. This control involves someone independent of the payroll process reviewing and approving the payroll journal before payments are released, thereby reducing the risk of errors or fraudulent payments. The other options are controls that may be used in the payroll process, but do not specifically address the prevention of errors or the authorization of wages.

Which of the Following Controls Prevents Error and Helps to Ensure