Which of the Following Circumstances Most Likely Would Cause an Auditor

question 26

Multiple Choice

Which of the following circumstances most likely would cause an auditor to suspect an employee payroll fraud scheme?

• A)There are significant unexplained variances between standard and actual labor cost.
• B)Payroll checks are disbursed by the same employee each payday.
• C)Employee time sheets are approved by individual departmental supervisors.
• D)A separate payroll bank account is maintained on an imprest basis.

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Definitions:

Sodium Chloride

The chemical name for table salt, a compound with the formula NaCl, widely used as a condiment and preservative.

Sodium

A soft, silver-white, highly reactive metal belonging to the alkali metal series in the periodic table, denoted by the symbol Na.

Calcium Carbonate

A white, insoluble solid (CaCO3) occurring naturally as chalk, limestone, marble, and forming the shells of sea creatures.

Combustion

A chemical reaction that occurs between a fuel and an oxidant, producing heat and often light; commonly known as burning.