Goldman Services Hired a New Clerk to Keep Custody of and Maintain

question 151

Multiple Choice

Goldman Services hired a new clerk to keep custody of and maintain all the equipment in the equipment yard.The clerk has not yet been adequately trained on the maintenance needs of the equipment.Which internal control procedure needs strengthening?

• A) assignment of responsibilities
• B) competent, reliable, and ethical personnel
• C) separation of duties
• D) documents

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Definitions:

Gross Earnings

The total amount of money earned by an individual or a company before any deductions such as taxes, benefits, or other expenses.

FICA-OASDI

FICA-OASDI is the Federal Insurance Contributions Act for Old-Age, Survivors, and Disability Insurance, a payroll tax funding Social Security and Medicare in the United States.

Taxable Earnings

The portion of an individual's or company's income that is subject to taxes by federal, state, or local governments.

Payroll Register

A record showing the details of the wages paid to each employee for a specific period.