A Weak Internal Control System Allows a Department Supervisor to "Clock

question 107

Multiple Choice

A weak internal control system allows a department supervisor to "clock in" for a fictitious employee and then approve the employee's time card at the end of the pay period. This fraud would be detected if other controls were in place, such as having an independent party

• A) distribute paychecks.
• B) recompute hours worked from time cards.
• C) foot the payroll journal and trace postings to the general ledger and the payroll master file.
• D) compare the date of the recorded check in the payroll journal with the date on the canceled checks and time cards.

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Definitions:

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