The careful and timely preparation of all payroll tax returns is necessary to avoid penalties and criminal charges. The most important control in the timely preparation of these returns is:
A) computerized preparation of tax returns.
B) a well-defined set of policies that indicate when each form must be filed.
C) independent verification of computer output by a competent individual.
D) a Gaant chart.

Question

Quizplus · Accepted Answer

A well-defined set of policies that indicate when each form must be filed is the most important control in the timely preparation of payroll tax returns. This ensures that all necessary forms are submitted on time, reducing the risk of penalties and criminal charges. Computerized preparation of tax returns and independent verification of computer output are helpful controls but they are not sufficient on their own. A Gantt chart is not relevant to this situation.

The Careful and Timely Preparation of All Payroll Tax Returns