Internal control activities within the payroll process, identified as segregation of duties, would include which of the following?
A)Payroll preparation, authorization of new hiring and pay rates, information systems, and general accounting should all be performed by different departments and / or different people.
B)IT controls over computer records and physical controls in records storage areas.
C)The payroll register is checked for mathematical accuracy and agreement with authorized pay rates and deductions.
D)Supervisor approval of time sheets prior to preparation of payroll documents.

Question

Quizplus · Accepted Answer

Segregation of duties involves dividing responsibilities among different people or departments to reduce the risk of error or fraud. Option A describes this by ensuring that payroll preparation, authorization, information systems, and accounting are handled by separate entities.

Internal Control Activities Within the Payroll Process, Identified as Segregation