Which of the following is not an internal control procedure for payroll?
A) employees observed clocking in and out
B) payroll depends on a fired employee's supervisor to notify them when an employee has been fired
C) payroll requires employees to show identification when picking up their paychecks
D) changes in pay rates on a computerized system must be tested by someone independent of payroll

Question

Quizplus · Accepted Answer

Depending on a supervisor to notify payroll of a fired employee is not an internal control procedure as it relies on human observation and communication. A more effective internal control procedure would be to have a system in place where HR updates a centralized database that feeds into payroll, ensuring terminated employees are immediately removed from payroll calculations. The other options are all strong internal control procedures, such as requiring employee identification, monitoring clock-in/out times, and having an independent party review pay rate changes in the computer system.

Which of the Following Is Not an Internal Control Procedure