Question Possible Error or Fraud Due to Weakness

$1.$ Employees paid by check? Checks issued, not recordedselected answer correct

$2.$ Special payroll bank account used? Hours for fictitious employee? Fictitious employees or hoursselected answer correct

$3.$ Independent payroll check signers? Accounting and classification errorsselected answer correct

$4.$ Independent bank statement reconciliation? Bank reconciliation errorsselected answer correct

$5.$ Payroll employees rotated, take vacations, and bonded? Unauthorized employees, hours, or rateselected answer correct

$6.$ Timekeeping independent of payroll? Hours overcharged $($fictitious hours$)$selected answer correct

$7.$ Wage rates approved? Unauthorized rates, improper ratesselected answer correct

$8.$ Deduction authorizations signed by employees? Errors in withholding, rateselected answer correct

$9.$ Hours and cost distribution approved by supervisor? Undetected errors and fraudsselected answer correct

$10.$ Time clock used? Fictitious employees, incomplete accountingselected answer correct

$11.$ Payroll sheet signed and approved? Fictitious employees, unauthorized paymentsselected answer correct

$12.$ Personnel department reports employees terminated to payroll department? Terminated employees paid and another cashes checks $($fictitious employee$)$selected answer correct

$13.$ Payroll compared to personnel files? not attempted

$14.$ Independent check distribution? not attempted

$15.$ Unclaimed wages controlled? not attempted

$16.$ Occasional surprise payoff by internal auditors? not attempted

$17.$ Personnel department reports employees hired to payroll departments? not attempted

$18.$ Payroll checks prenumbered? Sequence checked? not attempted

$19.$ Qualified person tracks retirement? not attempted

$20.$ Actuary employed? Assumptions reviewed? not attempted

$21.$ Cost records reconciled to payroll? not attempted

$22.$ Periodic audit of payroll by internal auditors? not attempted

$23.$ Reconciliation with tax reports? not attempted

$24.$ Classification instructions? not attempted

$25.$ Review by accounting officer?