Types of fraud that may occur in the payroll function includes all of the following, except:
A)Overstated hours
B)Incorrectly computed tax withholdings
C)False claims of sick leave
D)Pay claims made by ghost employees

Question

Quizplus · Accepted Answer

All of the options listed, except for incorrectly computed tax withholdings, are types of fraud that may occur in the payroll function. Overstated hours, false claims of sick leave, and pay claims made by ghost employees are all methods that employees may use to defraud their organization. However, incorrectly computed tax withholdings may be an error rather than an intentional act of fraud.

Types of Fraud That May Occur in the Payroll Function