The most vital control in preventing unauthorized changes to the payroll master file is
A) hiring totally honest people to access and make changes to this file.
B) segregation of duties between the preparation of paychecks and their distribution.
C) segregation of duties between the authorization of changes and the physical handling of paychecks.
D) having the controller closely review and then approve any changes to the master file.

Question

Quizplus · Accepted Answer

Segregation of duties between the authorization of changes to the payroll master file and the physical handling of paychecks is the most vital control to prevent unauthorized changes to the file. This ensures that no single person has the ability to make changes to the file without oversight or accountability. Hiring honest people, segregation of duties between preparing paychecks and their distribution, and controller review are all important controls, but they do not directly address the prevention of unauthorized changes to the payroll master file.

The Most Vital Control in Preventing Unauthorized Changes to the Payroll