An auditor is most likely to assess control risk at maximum if the payroll department supervisor is responsible for ________.
A)examining authorization forms for new employees
B)authorizing payroll rate changes for all employees
C)comparing payroll registers with original batch transmittal data
D)hiring all subordinate payroll department employees

Question

Quizplus · Accepted Answer

If the payroll department supervisor is responsible for authorizing payroll rate changes for all employees, there is a greater risk that they could potentially manipulate the rates for personal gain or commit fraud. This increases the control risk, making it more likely that the auditor will assess control risk at maximum. The other options mentioned involve tasks that are more routine and administrative, and would not necessarily increase the risk of fraudulent activities.

An Auditor Is Most Likely to Assess Control Risk at Maximum