A company's internal controls policies may mandate the distribution of paychecks by an independent paymaster in order to determine that:
A)Payroll deductions are properly authorized and computed.
B)Pay rates are properly authorized and separate from the operating functions.
C)Each employee's paycheck is supported by an approved time sheet.
D)Employees included in the period's payroll register actually exist and are currently employed.

Question

Quizplus · Accepted Answer

The distribution of paychecks by an independent paymaster helps ensure that employees receiving paychecks are real and currently employed, addressing potential ghost employee fraud.

A Company's Internal Controls Policies May Mandate the Distribution of Paychecks