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) Authorizing payroll rate changes for all employees.
D) Hiring all subordinate payroll department employees.

Question

Quizplus · Accepted Answer

Authorizing payroll rate changes for all employees involves a significant level of responsibility and the potential for fraud or errors. As such, if the payroll department supervisor is responsible for this task, an auditor would likely assess control risk at the maximum.

An Auditor Most Likely Would Assess Control Risk at the Maximum