Which of the Following Situations Represents an Internal Control Weakness

question 32

Multiple Choice

Which of the following situations represents an internal control weakness?

• A)Timekeeping is independent of the payroll department.
• B)Paychecks are distributed by the employees' immediate supervisor.
• C)Time cards are reconciled with job tickets.
• D)Personnel is responsible for updating employee records, including creation of records for new hires.

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Definitions:

Leasing

Leasing is a financial agreement in which one party, the lessor, allows another party, the lessee, to use an asset for a specified period in exchange for periodic payments.

CCA Tax Shield

CCA Tax Shield refers to the reduction in income tax a business enjoys from being able to deduct the depreciation of tangible property over its useful life, under Canada's Capital Cost Allowance regulations.

Borrow Money

The act of obtaining funds from a lender under the agreement to pay back the principal amount along with interest or fees.

Tax Rate

The percentage at which an individual or corporation is taxed by the government.