For good internal control, there should be a segregation of duties between personnel data creation/modification, payroll preparation, and disbursement of the checks.

Question

Quizplus · Accepted Answer

Segregation of duties helps to prevent fraud, errors, and other irregularities, as it requires different individuals to be responsible for different functions within a process. In terms of payroll, separating the tasks of personnel data creation/modification, payroll preparation, and check disbursement can ensure that no single individual has too much control over the process, reducing the risk of intentional or unintentional errors or improprieties.

For Good Internal Control, There Should Be a Segregation of Duties