Which of the following best describes effective internal control over payroll?
A) The preparation of the payroll must be under the control of the personnel department.
B) The confidentiality of employee payroll data should be carefully protected to prevent fraud.
C) The duties of hiring, payroll computation, and payment to employees should be segregated.
D) The payment of cash to employees should be replaced with payment by checks.

Question

Quizplus · Accepted Answer

The segregation of duties is an important aspect of effective internal control over payroll. This ensures that the person who computes payroll is different from the person who authorizes payment, reducing the risk of fraud. Option A does not necessarily ensure proper internal control over payroll, while Option B is important but does not directly address segregation of duties. Option D is also important, but it is not the best choice for describing effective internal control over payroll.

Which of the Following Best Describes Effective Internal Control Over