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:

Premiums

Regular payments made to keep an insurance policy active and maintain coverage against risks.

Endowment Policy

A life insurance contract designed to pay a lump sum after a specific term or on death.

Life Policy

An agreement that awards a specified sum to a named beneficiary when the person covered by the policy dies.

Maximum Available

The highest amount or quantity that can be used, offered, or allocated from a particular resource or within a specific framework.