Which of the Following Is TRUE of Good Internal Controls

question 128

Multiple Choice

Which of the following is TRUE of good internal controls over payroll?

• A) Accounting for payroll should be separate from hiring and firing of employees.
• B) Disbursement of paychecks should not be separate from the function of maintaining payroll records.
• C) Hiring and firing employees should not be separated from accounting and from disbursing paychecks.
• D) Cash receipts from customers should be separated from the accounting for accounts receivable.

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Definitions:

Interviews

A method of gathering information through direct conversation, often used for research or employment selection.

Statistical Process Control

The use of statistical methods to monitor and control a process to ensure that it operates at its full potential to produce conforming product.

Performance Output

The measurable results or outputs that come from an individual's or organization's efforts, often used as a basis for evaluation or comparison.

Variations

Refers to differences or deviations in characteristics, outcomes, or occurrences within a group or between groups.