An auditor most likely would assess control risk at the maximum if the payroll department supervisor is responsible for
A)examining authorization forms for new employees.
B)comparing payroll registers with original batch transmittal data.
C)distribute payroll checks to all employees.
D)hiring all subordinate payroll department employees.

Question

Quizplus · Accepted Answer

When the payroll department supervisor is responsible for distributing payroll checks to all employees, it increases the risk of unauthorized or fraudulent transactions because there is no segregation of duties. This concentration of responsibilities in one individual does not allow for proper checks and balances, leading an auditor to assess control risk at the maximum.

An Auditor Most Likely Would Assess Control Risk at the Maximum