Which of the Following Best Describes Effective Internal Control Over

question 3

Multiple Choice

Which of the following best describes effective internal control over payroll?

• A) The preparation of the payroll must be under the control of the personnel department.
• B) The confidentiality of employee payroll data should be carefully protected to prevent fraud.
• C) The duties of hiring, payroll computation, and payment to employees should be segregated.
• D) The payment of cash to employees should be replaced with payment by checks.

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Definitions:

Developed Nations

Countries with advanced industrial infrastructure, high living standards, and sophisticated economies.

Capital Formation

The creation of capital goods, which are used to produce other goods and services. It is a measure of economic growth and development.

Trade Deficit

The situation when a country imports more than it exports.

Economic Dependency

The condition of relying heavily on another economy for support, goods, services, or financial aid.