Which of the following is an important internal control over payroll?
A) Separating the duties of the disbursement of paychecks from the recording of payroll transactions in the ledger
B) Separating the duties of safeguarding property from record-keeping of property
C) Separating the duties of approving invoices from signing disbursement checks
D) Separating the duties of cash disbursement from bank reconciliations

Question

Quizplus · Accepted Answer

Separating the duties of the disbursement of paychecks from the recording of payroll transactions in the ledger is an important internal control over payroll as it reduces the risk of errors or fraud. By separating these duties, it ensures that no one person has total control over the payroll process, and there is proper oversight to ensure accuracy and completeness of payroll records. B, C, and D are all important internal controls, but they are not specifically related to payroll.

Which of the Following Is an Important Internal Control Over