Which of the Following Situations Represents an Internal Control Weakness

question 3

Multiple Choice

Which of the following situations represents an internal control weakness in the payroll department?

• A)Payroll department personnel are rotated in their duties.
• B)Paychecks are distributed by the employees' immediate supervisor.
• C)Payroll records are reconciled with quarterly tax reports.
• D)The timekeeping function is independent of the payroll department.

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Definitions:

Implied Warranty

A warranty that the law derives by implication or inference from the nature of the transaction or the relative situation or circumstances of the parties.

Warranty of Merchantability

An implied guarantee that a product will meet the standard quality and performance expectations for goods of its kind.

Garage Sale

An informal, often temporary sale of used goods by private individuals, typically held at the seller's residence.

Express Warranty

A written or spoken promise from a seller about the quality or functionality of a product.