An Internal Auditor Is Reviewing a New Automated Human Resources

question 16

Multiple Choice

An internal auditor is reviewing a new automated human resources system. The system contains a table of pay rates which are matched to the employee job classifications. The best control to ensure that the table is updated correctly for only valid pay changes would be to:

• A) Limit access to the data table to management and line supervisors who have the authority to determine pay rates.
• B) Require a supervisor in the department, who does not have the ability to change the table, to compare the changes to a signed management authorization.
• C) Ensure that adequate edit and reasonableness checks are built into the automated system.
• D) Require that all pay changes be signed by the employee to verify that the change goes to a bona fide employee.

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Definitions:

Tax Burden

The measure of the total amount of taxes paid by individuals or businesses relative to their income, often used to assess the impact of taxation on economic well-being.

Market Prices

Prices determined by the supply and demand for goods and services in a competitive market.

Excise Tax

A tax directly levied on certain goods, services, or activities, often with the aim of discouraging their use or consumption.

Relative Burden

The comparative impact of a tax, cost, or other financial obligation on an individual or group.