An Auditor Would Consider Internal Control Over an Entity's Payroll

question 41

Multiple Choice

An auditor would consider internal control over an entity's payroll procedures to be ineffective if the payroll department supervisor is responsible for:

• A)hiring subordinate payroll department employees.
• B)having custody over unclaimed paychecks.
• C)updating employee earnings records.
• D)applying pay rates to time tickets.

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Definitions:

Experimental Group

This is the group in an experiment that receives the variable being tested.

Control Group

In an experiment, the group that does not receive the treatment being tested, used as a benchmark to measure how the other tested subjects do.

Placebo Treatment

A simulated or otherwise medically ineffectual treatment given to deceive the recipient for psychological or experimental reasons.

Random Error

Variability in data that arises due to chance and affects measurements in unpredictable ways.