Which of the following is a major control risk related to payroll?
A)theft of inventory by staff
B)a dishonest employee cashing a paycheck that was written to a fictitious person
C)expenses being recorded as assets in order to manipulate earnings
D)contracts being awarded to relatives of employees

Question

Quizplus · Accepted Answer

The risk of a dishonest employee cashing a paycheck that was written to a fictitious person is a major control risk related to payroll because it can result in the misappropriation of company funds. This type of fraud can be difficult to detect and may go unnoticed for a significant period of time. Implementing controls, such as requiring two signatures on all payroll checks and reconciling payroll records with bank statements, can mitigate this risk. The other choices do not relate to payroll specifically.

Which of the Following Is a Major Control Risk Related