A CPA Reviews a Client's Payroll Procedures

question 25

Multiple Choice

A CPA reviews a client's payroll procedures.The CPA would consider internal control to be less than effective if a payroll department supervisor was assigned the responsibility for:

• A)Distributing payroll checks to employees
• B)Reviewing and approving time reports for subordinate employees
• C)Hiring subordinate employees
• D)Initiating requests for salary adjustments for subordinate employees

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Definitions:

Situational Leadership Theory

A leadership model proposed by Hersey and Blanchard which suggests that the most effective leadership style varies with the readiness or development level of the followers.

Consideration Concerns

involve being mindful and accommodating of the feelings, needs, and interests of others.

Structure Concerns

Refers to issues or considerations related to the organization, layout, or framework of a system or entity.

Worker Bee

A term often used metaphorically to describe someone who is industrious and hardworking, usually in a collective or organizational setting.