An auditor is most likely to assess control risk at maximum if the payroll department supervisor is responsible for
A)Examining authorization forms for new employees.
B)Authorizing payroll rate changes for all employees.
C)Comparing payroll registers with original batch transmittal data.
D)Hiring all subordinate payroll department employees.

Question

Quizplus · Accepted Answer

Authorizing payroll rate changes for all employees is a significant control risk because it allows the supervisor to make unauthorized changes to payroll, leading to potential fraud or errors.

An Auditor Is Most Likely to Assess Control Risk at Maximum