Which of the Following Would Raise a Red Flag in the Audit

question 37

Multiple Choice

Which of the following would raise a red flag in the audit of payroll?

• A) One person in the company is authorized to sign all payroll cheques.
• B) The endorsement on a cancelled payroll cheque included the words "for deposit only" above the payee's signature.
• C) The endorsement on a cancelled payroll cheque included the signature of a supervisor below the signature of the payee.
• D) A supervisor initialled the time card of an employee.

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Definitions:

Specimen Slide

A thin slice of material, such as tissue, placed on a glass slide for examination under a microscope.

Stage

A specific phase or period in a process or the progression of an event or disease.

Oil-immersion Objective

A microscope lens designed to be used with a drop of oil to increase magnification and resolution of microscopic images.

High Magnification

Refers to the ability of an optical system, such as a microscope, to make small objects appear significantly larger, allowing for detailed observation.