Theft or Fraudulent Distribution of Payroll Checks Is a Potential

question 89

Multiple Choice

Theft or fraudulent distribution of payroll checks is a potential threat to the payroll processing activity.What is one control that can be implemented to help prevent paychecks being issued to a "phantom" or "ghost" employee?

• A)the cashier should sign all payroll checks
• B)prenumber all payroll checks
• C)use an imprest account to clear payroll checks
• D)paychecks should be physically distributed by someone who does not authorize or record payroll

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