An Effective Internal Control for the Payroll Function Would Generally

question 45

Multiple Choice

An effective internal control for the payroll function would generally include which of the following?

• A)Total time recorded on time-clock cards should be reconciled to job reports by employees responsible for those specific jobs.
• B)Payroll department employees should be supervised by the management of the personnel department.
• C)Payroll department employees should be responsible for maintaining employee personnel records.
• D)Total time spent on jobs should be compared with total time indicated on time-clock cards.

---

Definitions:

RRSP

Registered Retirement Savings Plan, a Canadian investment account designed to save for retirement, offering tax benefits.

Compounded

The process where interest is calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

Annually

Annually means occurring once every year or pertaining to a period of one year.

Compounded

The process of earning interest on previously earned interest, leading to an increase in the total amount over time.