An auditor most likely would assess control risk at the maximum 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)Distribute payroll checks to all employees.
D)Hiring all subordinate payroll department employees.

Question

Quizplus · Accepted Answer

If the payroll department supervisor is responsible for distributing payroll checks, it creates a risk of fraud or error, as the supervisor could potentially manipulate payroll records and distribute unauthorized checks. This lack of segregation of duties would lead an auditor to assess control risk at the maximum.

An Auditor Most Likely Would Assess Control Risk at the Maximum