A CPA Reviews an Entity's Payroll Procedures

question 7

Multiple Choice

A CPA reviews an entity'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:

Leader Attribute

Characteristics or qualities that contribute to someone's ability to effectively lead others.

Visionary

A person with original ideas about what the future could or should be like, often able to inspire others towards a shared long-term goal.

Ideal Values

The beliefs or standards considered most desirable or perfect by an individual or organization.

Actual Values

The real or genuine principles that govern an individual's or organization's actions.