For Good Internal Control, the Payroll Function Should Be Independent

question 120

True/False

For good internal control, the payroll function should be independent of the human resources department.

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Definitions:

Genuine Signatures

Authentic and original signatures that verify the identity of signatories and their intent.

Unauthorized Signatures

Signatures made without the express permission or authority of the person purported to sign, potentially leading to legal complications in contract enforcement.

Bank Statement

A monthly or periodic document summarising the financial transactions and balance in a person's bank account.

Reasonable Care

A legal standard that requires individuals to act with the same level of caution and attention that a reasonably prudent person would exhibit under similar circumstances.