When Developing the Internal Controls and Record Retention for a Payroll

question 42

Multiple Choice

When developing the internal controls and record retention for a payroll system,a company should:

• A)Involve all company employees to promote transparency.
• B)Develop a closed system and alternate employee duties.
• C)Designate a single employee with the responsibility for pay disbursements.
• D)Train accounting personnel on a single payroll task.

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Definitions:

Damages

Monetary compensation awarded by a court to a person who has suffered loss or harm due to the wrongful act of another.

Expenses Incurred

Costs that have been recognized or are payable due to business activities or transactions.

Breach Of Contract

The violation of any of the agreed-upon terms and conditions of a binding contract.

Special Damages

Compensatory damages that cover specific, quantifiable financial losses suffered by a plaintiff, such as medical bills or lost wages, due to the defendant's wrongdoing.