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:

Horn Effect

A cognitive bias causing negative traits or experiences with an individual to influence overall perception of them disproportionally.

Recency Effect

is the cognitive phenomenon where the most recently presented items or experiences are more likely to be remembered than those presented earlier.

Superimposing

The process of laying or placing one thing over another, typically so that both are still evident.