Internal control activities within the payroll process, identified as authorization, would include which of the following?
A)Preparation of a bank reconciliation
B)Independent paymaster
C)Manager approval of payroll prior to signing checks
D)Physical controls in areas where cash and paychecks are held

Question

Quizplus · Accepted Answer

Authorization in the payroll process involves ensuring that payroll is approved by a manager or supervisor before checks are released to employees. The other choices are not related to authorization within the payroll process. A bank reconciliation is a part of cash accounting, an independent paymaster is not directly related to the authorization of payroll, and physical controls in the areas where cash and paychecks are held are examples of security controls.

Internal Control Activities Within the Payroll Process, Identified as Authorization