Question

1. For the following risk within the payroll process, please select the activity that would best alleviate said risk: Paying employees for more hours than they worked. (Answer IS NOT "A")
   1. Accurately maintained standing data
   2. Monthly verification that all time cards have resulted in a paycheck
   3. Time clock
   4. Imprest fund

Answer 1

For the following risk within the payroll process, please select the activity that would best alleviate said risk: Paying employees for more hours than they worked.

The Correct answer is OPTION B i.e Monthly verification that all time cards have resulted in a paycheck

Explanation

Monthly verification that all time cards have resulted in a paycheck always have some kind of errors and best elleviate the said risk i.e paying employees for more hours then they worked.
For any payroll process, the data should be verified on daily basis, not monthly verification should be done as it increases the chances of more errors.

• The above risk was not possible there was greatly maintained standing data.

Other options like time clock and imprest funds cannot even alleviate the said risk.

• As time clock is a kind of clock which maintains the records of employees working hours which works on time basis.
• Imprest funds are such small funds which are kept aside for the use of small expenses or incidental expenses.