Question

Why would an organization require the paymaster to deliver all unclaimed paychecks to the internal audit department?

a.to detect a "phantom employee" for whom a check was produced
b.to prevent an absent employee's check from being lost
c.to avoid paying absent employees for payday
d.to prevent the paymaster from cashing unclaimed checks

Answer 1

Organizations deliver unclaimed paychecks to the internal audit department to check for 'phantom employees' and prevent misuse or theft, ensuring payroll integrity.

Step-by-step explanation:

An organization might require the paymaster to deliver all unclaimed paychecks to the internal audit department to detect a 'phantom employee' for whom a check was produced. This allows the internal audit to oversee and verify the legitimacy of each paycheck and to help ensure that no fraudulent activities are taking place such as issuing paychecks to non-existent employees. Additionally, delivering unclaimed paychecks to internal audit can prevent potential theft or misuse of those checks by requiring a higher level of oversight and control within the organization. Internal audit, by investigating any irregularities in unclaimed paychecks, can also contribute to preventing the paymaster from cashing unclaimed checks, maintaining integrity in the payroll process.