For good internal control, the payroll function should be independent of the human resources department.

Question

Quizplus · Accepted Answer

Separating payroll from the human resources department ensures that there is a proper check and balance system in place, reducing the risk of errors and fraudulent activities. The individuals responsible for human resources function may not have the necessary expertise in payroll processing, and there can be a conflict of interest when they are responsible for payroll as well. Therefore, it is recommended to keep the two functions separate.

For Good Internal Control, the Payroll Function Should Be Independent