Which of the following is an effective internal control used to prove that production department employees are properly validating payroll time sheets?
A)Time sheets should be carefully inspected by those persons who distribute pay envelopes to the employees.
B)One person should be responsible for maintaining records of employee time for which salary payment is not to be made.
C)Daily reports showing time charged to jobs should be approved by the foreman and compared to the total hours worked on the employee time sheets.
D)Internal auditors should make observations of distribution of paychecks on a surprise basis.

Question

Quizplus · Accepted Answer

Daily reports showing time charged to jobs should be approved by the foreman and compared to the total hours worked on the employee time sheets. This ensures that the time recorded on the time sheets is accurate and has been properly validated by the production department. The other options do not directly address the issue of validating time sheets.

Which of the Following Is an Effective Internal Control Used