A CPA reviews a client's payroll procedures.The CPA would consider internal control to be less than effective if a payroll department supervisor was assigned the responsibility for:
A)Reviewing and approving time reports for subordinate employees.
B)Distributing payroll checks to employees.
C)Hiring subordinate employees.
D)Initiating requests for salary adjustments for subordinate employees.

Question

Quizplus · Accepted Answer

Distributing payroll checks to employees by a payroll department supervisor could compromise the segregation of duties principle. This task should be separated from the responsibilities of supervising and processing payroll to prevent potential fraud or errors.

A CPA Reviews a Client's Payroll Procedures