Which of the following is a control that can be implemented to help prevent paychecks being issued to a "phantom" or "ghost" employee?
A)The cashier should sign all payroll checks.
B)Sequentially prenumber all payroll checks.
C)Use an imprest account to clear payroll checks.
D)Paychecks should be physically distributed by someone who does not authorize time data or record payroll.

Question

Quizplus · Accepted Answer

Paychecks should be physically distributed by someone who does not authorize time data or record payroll. This will prevent any collusion between the person who records payroll and someone who may be attempting to receive paychecks for a ghost employee. The other options (A, B, C) are all good internal controls, but they would not specifically address this particular issue.

Which of the Following Is a Control That Can Be