Which of the following is true of good internal controls over payroll?
A)Accounting for payroll should be separate from hiring and firing of employees.
B)Disbursement of paychecks should not be separate from the function of maintaining payroll records.
C)Hiring and firing employees should not be separated from accounting and from disbursing paychecks.
D)Cash receipts from customers should be separated from the accounting for accounts receivable.

Question

Quizplus · Accepted Answer

Separating the functions of accounting for payroll and hiring/firing employees ensures that the payroll records are accurate and free from any bias or manipulation. If the same person handles both payroll and employee management, they may be inclined to manipulate records to benefit themselves or others. Therefore, it is important to have a clear separation of duties.

Which of the Following Is True of Good Internal Controls