An auditor most likely would assess control risk at high 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

The payroll department supervisor authorizing payroll rate changes for all employees creates a high risk for lack of segregation of duties. This lack of segregation can result in the supervisor manipulating the payroll to include unauthorized or excessive payments to themselves or others. Therefore, the auditor would assess control risk as high in this case.

An Auditor Most Likely Would Assess Control Risk at High