A CPA Reviews a Client's Payroll Procedures

question 25

Multiple Choice

A CPA reviews a client's payroll procedures.The CPA would consider internal control to be less than effective if a payroll department supervisor was assigned the responsibility for:

• A)Distributing payroll checks to employees
• B)Reviewing and approving time reports for subordinate employees
• C)Hiring subordinate employees
• D)Initiating requests for salary adjustments for subordinate employees

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Definitions:

Labor-Management Practices

the strategies, policies, and behaviors adopted by employers (management) and employees (labor) in their interactions, negotiations, and collaborations.

Multinational Corporation

A company that operates in multiple countries, managing production or delivering services in various international locations.

Employment-At-Will

A doctrine allowing employers and employees to end employment at any time without reason, provided it doesn’t violate discriminatory laws.

Termination-At-Will

Refers to the employment arrangement in many U.S. states where either the employer or employee can end the employment relationship at any time, for any reason not prohibited by law, without prior notice.