Common controls of the risk paying fictitious employees do not include:
A)Regularly reconcile payments made to payroll records.
B)Independent authorisation required to create new employee record.
C)One for one checking of employee termination notices against current employee pay records
D)Segregation of duties

Question

Quizplus · Accepted Answer

Regularly reconciling payments made to payroll records is a control measure aimed at detecting discrepancies or errors in payroll processing, rather than specifically addressing the risk of paying fictitious employees. Controls specifically designed to prevent or detect payments to fictitious employees include independent authorization for creating new employee records, checking employee termination notices against current pay records, and segregation of duties to ensure no single individual has control over all aspects of the payroll process.

Common Controls of the Risk Paying Fictitious Employees Do Not