The key to preventing unauthorized changes to the payroll master file is
A)hiring totally honest people to access and make changes to this file.
B)segregating duties between the preparation of paychecks and their distribution.
C)segregation of duties between the authorization of changes and the physical handling of paychecks.
D)having the controller closely review and then approve any changes to the master file.

Question

Quizplus · Accepted Answer

By segregating duties between the authorization of changes and the physical handling of paychecks, there is a control in place to prevent an individual from making unauthorized changes to the payroll master file and then distributing the altered paychecks. This control provides a check and balance system to prevent potential fraud or errors. While having honest people and reviewing changes are also important controls, they are not as effective as the segregation of duties in preventing unauthorized changes to the payroll master file.

The Key to Preventing Unauthorized Changes to the Payroll Master