A CPA Reviews an Entity's Payroll Procedures

question 7

Multiple Choice

A CPA reviews an entity'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)distributing payroll checks to employees.
• B)reviewing and approving time reports for subordinate employees.
• C)hiring subordinate employees.
• D)initiating requests for salary adjustments for subordinate employees.

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Definitions:

Assault

An intentional tort that prohibits any attempt or offer to cause harmful or offensive contact with another if it results in a well-grounded apprehension of imminent battery in the mind of the threatened person.

Threatens

Expressing or implying an intention to cause harm or negative consequences in order to influence someone's actions or decisions.

Nuisance

An act, condition, or thing that interferes with the use or enjoyment of property.

Trespass

An unauthorized entry on another’s property.