Theft or fraudulent distribution of payroll checks is a potential threat to the payroll processing activity.What is one control that can be implemented to help prevent paychecks being issued to a "phantom" or "ghost" employee?
A)the cashier should sign all payroll checks
B)prenumber all payroll checks
C)use an imprest account to clear payroll checks
D)paychecks should be physically distributed by someone who does not authorize or record payroll

Question

Quizplus · Accepted Answer

Having paychecks distributed by someone who does not authorize or record payroll helps ensure that there is a separation of duties, reducing the risk of fraudulent issuance to non-existent employees.

Theft or Fraudulent Distribution of Payroll Checks Is a Potential