Which of the following is the most important control for reducing the opportunity for fraud involving paycheck forgery?
A)Segregation of check distribution from payroll duties
B)Prompt redeposit of unclaimed paychecks
C)A separate payroll bank account
D)Direct deposit of checks

Question

Quizplus · Accepted Answer

Segregation of check distribution from payroll duties is the most important control for reducing the opportunity for fraud involving paycheck forgery. This ensures that the person who is responsible for approving and preparing payroll is separate from the person who distributes the checks, which reduces the opportunity for fraud. Prompt redeposit of unclaimed paychecks, a separate payroll bank account, and direct deposit of checks are also effective controls, but they are not as crucial as segregation of duties.

Which of the Following Is the Most Important Control for Reducing