When developing the internal controls and record retention for a payroll system, a company should:
A)Designate a single employee with the responsibility for pay disbursements.
B)Involve all company employees to promote transparency.
C)Train accounting personnel on a single payroll task.
D)Develop a closed system and alternate employee duties.

Question

Quizplus · Accepted Answer

Developing a closed system and alternating employee duties are key components of internal controls for a payroll system. This approach helps prevent fraud and errors by ensuring no single employee has control over all aspects of the payroll process, thereby increasing security and accuracy.

When Developing the Internal Controls and Record Retention for a Payroll