Which of the Following Is a Control Risk Related to Payroll

question 153

Multiple Choice

Which of the following is a control risk related to payroll?

• A) theft of inventory by staff
• B) a dishonest employee cashing a paycheck that was written to a fictitious person
• C) expenses being recorded as assets in order to manipulate earnings
• D) contracts being awarded to relatives of employees

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Definitions:

African Nation

An independent, sovereign country located on the African continent.

World Trade Organization

An international organization designed to facilitate and regulate international trade by providing a forum for negotiations and dispute resolution.

Developing Nation

A term used to describe a country with a relatively low level of industrial and economic development.

Economies of Scale

Cost advantages that entities obtain due to their scale of operation, leading to a reduction in per-unit cost as production increases.