Final answer:
To improve internal control, paychecks should not be distributed by the employee's supervisor.
Step-by-step explanation:
In order to improve internal control, it is generally recommended that paychecks should not be distributed by the employee's supervisor. The principle of separation of duties is a key concept in internal control, which aims to prevent fraudulent activities and errors. By separating the tasks of preparing and distributing paychecks, the risk of unauthorized access or tampering is reduced. For example, if the supervisor has control over both the preparation and distribution of paychecks, they could potentially manipulate the process by issuing extra paychecks to themselves or others.
Instead, it is preferable to have a separate department or individual responsible for paycheck distribution, preferably one that is independent of the supervisor or the payroll department. This helps to ensure that there is a checks-and-balances system in place, where different individuals are involved in the various steps of the payroll process.
In conclusion, to enhance internal control, it is advisable to have an independent party distribute paychecks rather than the employee's supervisor.