In a company, payroll is processed by the payroll manager who also has the authority to add new employees to the payroll system. This presents a risk of fraud or errors because the payroll manager could potentially add fictitious employees (also known as "ghost employees") to the system and then process payments to these non-existent individuals. This risk is exacerbated by the lack of segregation of duties, where one person has control over both the authorization and recording functions in the payroll process. Which control would best mitigate the risk associated with this scenario? A. Require the payroll manager to document and file the payroll processing steps for record-keeping purposes. B. Implement a complex password policy for accessing the payroll system.O C. Ensure that employees are reminded to check their pay stubs for accuracy after each payroll cycle. D. Have an independent supervisor review the payroll before payments are made.
Added by Cassie J.
Step 1
Step 1: Identify the main risk in the scenario, which is the potential for the payroll manager to add fictitious employees to the payroll system and process payments to them due to a lack of segregation of duties. Show more…
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