Which of the Following Is a Major Control Risk in the Payroll

question 17

Multiple Choice

Which of the following is a major control risk in the payroll area?

• A)Theft of inventory by staff
• B)Fictitious persons cashing pay cheques
• C)Contracts being awarded to relatives of employees
• D)Expenses being recorded as assets in order to manipulate earnings

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Definitions:

Partnership End

The dissolution or termination of a partnership agreement, often involving the settlement of debts and distribution of assets among partners.

Partner Dies

The event of a partner's death in a partnership arrangement, affecting the partnership's continuity and operational dynamics.

Business Expertise

Business expertise refers to the specialized knowledge and skills in managing and operating businesses effectively.

Limited Partner

A limited partner is an investor in a partnership who is not involved in day-to-day operations and whose liability is limited to the amount of their investment in the partnership.