Question

The control that would most likely ensure that payroll checks are written only for authorized amounts is to:

1) Use a secure check printing software
2) Implement a two-step approval process for check issuance
3) Require employees to sign each check they receive
4) Perform regular audits of payroll transactions

Answer 1

2) Implement a two-step approval process for check issuance. Implementing a two-step approval process for check issuance would ensure that payroll checks are written only for authorized amounts.

Step-by-step explanation:

The control that would most likely ensure that payroll checks are written only for authorized amounts is to implement a two-step approval process for check issuance. This control involves having multiple individuals verify and approve the check amount before it is written and distributed.

Here is a step-by-step explanation:

1. When a payroll check needs to be written, the first step is to have one person calculate the amount based on the employee's salary, deductions, and any additional payments.
2. After the calculation, the check amount should be sent to another person for verification. This step ensures that the amount is accurate and authorized.
3. If the second person approves the check amount, it can then be written and distributed to the employee.
4. By requiring two separate individuals to review and approve the check amount, the likelihood of unauthorized or incorrect amounts being written is minimized.