Which of the following is an accurate statement regarding nonexistent employees?
A) In order to prevent this type of fraud, the foreman should distribute the paychecks and approve the time cards.
B) Records for all terminated employees should be destroyed to prevent this type of fraud.
C) The person committing this type of fraud is generally the CEO or CFO of the company.
D) This type of fraud often results from the continuance of an employee on the payroll after the employee has been terminated.

Question

Quizplus · Accepted Answer

Nonexistent employees can result from continued payment to employees who have been terminated. This can occur if payroll records are not updated or if someone is intentionally committing fraud by keeping a terminated employee on the payroll and pocketing their salary. Therefore, it is important to have regular audits to detect and prevent this type of fraud. Choices A, B, and C are not accurate statements regarding nonexistent employees.

Which of the Following Is an Accurate Statement Regarding Nonexistent