Which of the following situations represents an internal control weakness?
A)Timekeeping is independent of the payroll department.
B)Paychecks are distributed by the employees' immediate supervisor.
C)Time cards are reconciled with job tickets.
D)Personnel is responsible for updating employee records, including creation of records for new hires.

Question

Quizplus · Accepted Answer

Paychecks being distributed by the employees' immediate supervisor raises concerns about the possibility of fraud, as the supervisor may manipulate the payment process for personal gain or favoritism. This represents an internal control weakness. The other options appear to be indicative of proper internal controls, where timekeeping is independent of payroll, time cards are reconciled with job tickets and personnel is responsible for updating employee records, including creation of records for new hires.

Which of the Following Situations Represents an Internal Control Weakness