Which of the Following Is Not an Internal Control Procedure

question 93

Multiple Choice

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

• A) observe clocking in and out time for the employees
• 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

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Definitions:

Year-End Inventory

Year-End Inventory is the total value of all inventory held by a company at the end of its fiscal year, crucial for financial reporting and tax calculations.

Weighted Average Cost

A method of inventory valuation that calculates the cost of goods sold and ending inventory based on the average cost of all units available for sale.

Inventory Balance

The total value of a company's goods and materials held in stock, as recorded on the balance sheet.

Weighted Average Cost

A method of valuing inventory and cost of goods sold that considers the cost of each item in proportion to its quantity.