Which of the Following Procedures Would Be Most Useful in Determining

question 54

Multiple Choice

Which of the following procedures would be most useful in determining the effectiveness of a company's internal controls regarding the existence or occurrence of payroll transactions?

• A)Observe the segregation of duties concerning personnel responsibilities and payroll disbursement.
• B)Inspect evidence of accounting for prenumbered payroll checks.
• C)Recompute the payroll deductions for employee fringe benefits.
• D)Verify the preparation of the monthly payroll account bank reconciliation.

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Definitions:

Business Regulations

Rules and standards set by governments or regulatory bodies to control and guide the operations, ethics, and practices of businesses within a jurisdiction.

Arbitration

A method of dispute resolution where an impartial third party makes a decision to resolve the conflict, often used as an alternative to litigation.

Binding Decision

A definitive ruling or judgment, usually from a court or tribunal, that is legally required to be followed.

Third Party

An entity or individual that is involved in a transaction or agreement but is not one of the principal parties, often providing services or mediation.