Which of the Following Circumstances Most Likely Would Cause an Auditor

question 51

Multiple Choice

Which of the following circumstances most likely would cause an auditor to suspect an employee payroll fraud scheme?

• A) There are significant unexplained variances between standard and actual labor cost.
• B) Payroll checks are disbursed by the same employee each payday.
• C) Employee time cards are approved by individual departmental supervisors.
• D) A separate payroll bank account is maintained on an impress basis.

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Definitions:

Cognitive Processes

Mental activities that include thinking, understanding, learning, and remembering, involved in gaining knowledge and comprehension.

Psychology

The scientific study of the mind and behavior, encompassing both conscious and unconscious phenomena.

Functionalists

Functionalists are theorists in various fields who focus on the function or purpose of behavior and conscious experience.

Introspection

The review or study of one's own mind and feelings.