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 involves restricting access to those who need it and implementing checks and balances to prevent fraud or errors. Alternate employee duties ensure that no single person has too much control or authority over the payroll system. Additionally, the company should determine the appropriate record retention period and storage method to comply with legal and regulatory requirements.

When Developing the Internal Controls and Record Retention for a Payroll