All of the Following Are Internal Control Procedures That Are

question 46

Multiple Choice

All of the following are internal control procedures that are recommended to protect payroll operations except

• A)make voluntary deductions from employee earnings based only on a signed authorization from the employee.
• B)keep payroll records in locked files.
• C)retain all Forms W-4.
• D)assign new employees to work in payroll operations.

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Definitions:

Gratuitous Agency

Gratuitous agency refers to an arrangement where an agent acts on behalf of a principal without receiving any compensation for their services, often based on personal or familial relationships.

Terminable

Describing something, such as a contract or employment, that can be ended or terminated, usually under specific conditions outlined within the agreement.

Revocation

The official withdrawal or cancellation of a right, privilege, license, or contract, often by the party who granted it or by law.

Renunciation

The formal rejection of a claim, right, or possession, often in a legal context.