Auditing & Assurance Services 6th Edition by Timothy Louwers

Exercise 44

A large retail enterprise has established a policy that requires the paymaster to deliver all unclaimed payroll checks to the internal audit department at the end of each payroll distribution day. This policy was most likely adopted to
A) Ensure that employees who were absent on a payroll distribution day are not paid for that day.
B) Prevent the paymaster from cashing checks that are unclaimed for several weeks.
C) Prevent a bona fide employee's check from being claimed by another employee.
D) Detect any fictitious employee who may have been placed on the payroll.