An Effective System of Internal Control Over the Payroll Function

question 3

Multiple Choice

An effective system of internal control over the payroll function would include

• A) verification of agreement of job time tickets with employee clock card hours by a payroll department employee.
• B) reconciliation of totals on job time tickets with job reports by employees responsible for those specific jobs.
• C) custody of rate authorization records by the supervisor of the payroll department.
• D) preparation of payroll transaction journal entries by an employee who reports to the supervisor of the human resource department.

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Definitions:

Cross-Rate

An exchange rate between two currencies derived from their respective exchange rates with a third, common currency.

Exchange Rate

The exchange rate is the value of one currency for the purpose of conversion to another, indicating how much of one currency can be exchanged for another currency.

Forward Exchange Rate

The forward exchange rate is the agreed-upon exchange rate for a currency pair to be traded on a future date, protecting against currency fluctuations.

Exchange Rate

How much one currency is valued when converted into another currency.