The Most Vital Control in Preventing Unauthorized Changes to the Payroll

question 56

Multiple Choice

The most vital control in preventing unauthorized changes to the payroll master file is

• A) hiring totally honest people to access and make changes to this file.
• B) segregation of duties between the preparation of paychecks and their distribution.
• C) segregation of duties between the authorization of changes and the physical handling of paychecks.
• D) having the controller closely review and then approve any changes to the master file.

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Definitions:

Perfectly Competitive

A market structure characterized by many buyers and sellers, homogeneous products, and free entry and exit, which leads to an efficient allocation of resources.

Market Wage

The prevailing rate of pay for workers in a particular labor market, job, or industry.

Perfect Competitor

A theoretical market situation in which no individual buyer or seller has the power to influence market prices.

Demand Curve

An illustrated chart that depicts how the demand for a product varies with changes in its price.