Which of the Following Is Not an Internal Control Procedure

question 25

Multiple Choice

Which of the following is not an internal control procedure for payroll?

• A) employees observed clocking in and out
• B) payroll depends on a fired employee's supervisor to notify them when an employee has been fired
• C) payroll requires employees to show identification when picking up their paychecks
• D) changes in pay rates on a computerized system must be tested by someone independent of payroll

---

Definitions:

Net Present Value

Net Present Value (NPV) is a financial metric that calculates the present value of all cash flows associated with a project, including both inflows and outflows, to determine its profitability.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money that they borrow from a lender.

Conglomerate

A large corporation that owns a collection of different companies in various sectors or industries.

Return Rate

The profit or deficit experienced by an investment during a certain period, represented as a portion of the initial investment's value.