Which of the Following Circumstances Most Likely Would Cause an Auditor

question 26

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 sheets are approved by individual departmental supervisors.
• D)A separate payroll bank account is maintained on an imprest basis.

---

Definitions:

Economic Growth

The increase in the market value of the goods and services produced by an economy over time, typically measured as the percent rate of increase in real gross domestic product (GDP).

Baby Boomers

A demographic group defined by the significant increase in birth rates following World War II, typically considered born between 1946 and 1964.

Age Seniority

The system or practice of giving precedence, respect, or authority to individuals based on their age, often found in traditional societies.

South Korean

Pertaining to or originating from South Korea, a country in East Asia located on the southern half of the Korean Peninsula.