From an audit point of view, which one of the following would NOT be an important internal control in the personnel cycle?
A) physical control over assets and records
B) reconciliation of total payroll expense in the general ledger with the payroll tax returns and the group certificates
C) adequate separation of duties
D) proper authorisation of changes in pay rates

Question

Quizplus · Accepted Answer

Reconciliation of total payroll expense in the general ledger with the payroll tax returns and the group certificates is more related to the accounting and financial reporting cycle than to the internal controls specifically within the personnel or payroll cycle. Internal controls in the personnel cycle typically focus on safeguarding assets, ensuring accuracy of payroll transactions, and compliance with policies and regulations, rather than the reconciliation process with tax returns and certificates.

From an Audit Point of View, Which One of the Following