A CPA Reviews a Client's Payroll Procedures

question 81

Multiple Choice

A CPA reviews a client's payroll procedures.The CPA would consider internal control to be less than effective if a payroll department supervisor was assigned the responsibility for:

• A)Reviewing and approving time reports for subordinate employees.
• B)Distributing payroll checks to employees.
• C)Hiring subordinate employees.
• D)Initiating requests for salary adjustments for subordinate employees.

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Definitions:

Governmental Regulations

Laws and rules established by government agencies that dictate business practices, standards, and behaviors.

Socio-Cultural

Referring to the social and cultural dimensions or factors that influence an individual's behavior, values, and perceptions.

Technological

Relating to or involving technology, especially in the context of new and innovative digital or electronic devices.

Natural Environment

The physical, biological, and chemical surroundings in which living organisms interact and are affected.