Which of the following circumstances most likely would cause an auditor to suspect an employee payroll fraud scheme?
A) There are significant unexplained variances between standard and actual labor cost.
B) Payroll checks are disbursed by the same employee each payday.
C) Employee time cards are approved by individual departmental supervisors.
D) A separate payroll bank account is maintained on an imprest basis.

Question

Quizplus · Accepted Answer

Significant unexplained variances between standard and actual labor cost could be an indication of ghost employees or employees being paid for hours not worked.

Which of the Following Circumstances Most Likely Would Cause an Auditor