Segregation of the Functions of Payroll and Personnel Do All

question 13

Multiple Choice

Segregation of the functions of payroll and personnel do all of the following, except:

• A) reduce the risk of payments to fictitious employees.
• B) reduce the risk of payments to terminated employees.
• C) restrict the recording of new employee data to the payroll department.
• D) restrict the payment of wages to the payroll department.

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Definitions:

Incapacitation

A state of being unable to act or make legal decisions due to physical or mental limitations.

Undisclosed Principal

A principal whose existence is not known by a third party. That is, the third party does not know that an agent is acting on behalf of a principal.

Agent

An individual or entity authorized to act on behalf of another (known as the principal) in dealings with third parties, creating a legal relationship called agency.

Authority

The power or right to give orders, make decisions, and enforce obedience, or a person or organization having such power.