An audit team most likely would assess control risk at the maximum if the payroll department supervisor is responsible for
A)examining authorization forms for new employees.
B)comparing payroll registers with original batch transmittal data.
C)authorizing payroll rate changes for all employees.
D)hiring all subordinate payroll department employees.

Question

Quizplus · Accepted Answer

When the payroll supervisor is responsible for authorizing payroll rate changes for all employees, there is a high risk of the supervisor being able to make unauthorized changes, resulting in incorrect payments to employees. This could lead to financial misstatements in the company's financial statements. As a result, the audit team would likely assess control risk at the maximum.

An Audit Team Most Likely Would Assess Control Risk at the Maximum