Which of the Following Is a Major Control Risk in the Payroll

question 41

Multiple Choice

Which of the following is a major control risk in the payroll area?

• A) Theft of inventory by staff
• B) Fictitious persons cashing paychecks
• C) Expenses being recorded as assets in order to manipulate earnings
• D) Contracts being awarded to relatives of employees

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Definitions:

Automakers

Companies that manufacture automobiles.

Dealer Networks

Systems of authorized sellers that distribute and service products for manufacturers, often providing localized customer access to products and support.

Chrysler

An American automotive brand and subsidiary of Stellantis, known for producing vehicles such as cars, minivans, and sport utility vehicles.

Logistical Function

Involves the planning, implementation, and control of the efficient flow and storage of goods, services, and related information from point of origin to point of consumption to meet customer requirements.