Which of the Following Best Describes Effective Internal Control Over

question 3

Multiple Choice

Which of the following best describes effective internal control over payroll?

• A) The preparation of the payroll must be under the control of the personnel department.
• B) The confidentiality of employee payroll data should be carefully protected to prevent fraud.
• C) The duties of hiring, payroll computation, and payment to employees should be segregated.
• D) The payment of cash to employees should be replaced with payment by checks.

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Definitions:

Effect Dependence

Reliance on others due to their capacity to provide rewards and punishment.

Information Dependence

Reliance on others for information about how to think, feel, and act.

Socialization

The process by which people learn the attitudes, knowledge, and behaviours that are necessary for a person to function in a group or organization.

Compliance

The act of conforming to, following, or acting in accordance with requests, standards, or rules.