An Auditor Would Consider Internal Control Over an Entity's Payroll

question 41

Multiple Choice

An auditor would consider internal control over an entity's payroll procedures to be ineffective if the payroll department supervisor is responsible for:

• A)hiring subordinate payroll department employees.
• B)having custody over unclaimed paychecks.
• C)updating employee earnings records.
• D)applying pay rates to time tickets.

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Definitions:

Average Product

The output per unit of input, typically calculated for labor or capital in the production process.

Units of Labor

Measurements that represent the amount of work or effort by labor, typically used in the context of production processes.

Marginal Product

Refers to the additional output resulting from using one more unit of a specific input, holding all other inputs constant.

Total Product

The total output or production by a firm using a given amount of inputs.