A Weak Internal Control System Allows a Foreman to Clock

question 16

Multiple Choice

A weak internal control system allows a foreman to clock in daily for a fictitious employee and to approve the time card at the end of the payroll period.This fraud would be detected if other controls were in place,such as having an independent party

• A)compare the date of the recorded cheque in the payroll journal with the date on the cancelled cheques and time cards.
• B)foot the payroll journal and trace postings to the general ledger and the payroll master file.
• C)recompute hours worked from time cards.
• D)distribute paycheques.

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Definitions:

Linking Pins

Represent individuals or entities that connect different groups or levels within an organization, facilitating communication and coordination.

Interlocking Networks

A concept in organizational theory where multiple members of a board of directors serve on the boards of multiple corporations, often leading to high levels of connectivity and potential conflicts of interest.

Empowerment

What enables others to gain and use decision-making power.

Face-to-face Interaction Techniques

Methods used to facilitate direct, personal communication between individuals, often to improve understanding or resolve conflict.