Internal control activities within the payroll process, identified as adequate records and documents, would include which of the following?
A)Manager approval of payroll prior to signing checks
B)Independent paymaster
C)Physical controls in areas where cash and paychecks are held
D)Paychecks are prepared on prenumbered checks

Question

Quizplus · Accepted Answer

Option D, prenumbered checks, is an internal control activity that can help to prevent fraud and assist with record-keeping. If paychecks are prepared on prenumbered checks, it is easier to track which checks have been issued and to detect any missing or unauthorized checks. Options A, B, and C are also important internal control activities but are not specific to the records and documents aspect of the payroll process. Option A focuses on managerial approval, Option B focuses on having an independent party involved in the process, and Option C focuses on physical controls to safeguard the assets.

Internal Control Activities Within the Payroll Process, Identified as Adequate