Question

Which of the following is an accurate statement regarding nonexistent employees?

1) In order to prevent this type of fraud, the foreman should distribute the paychecks and approve the time cards.
2) Records for all terminated employees should be destroyed to prevent this type of fraud.
3) The person committing this type of fraud is generally the CEO or CFO of the company.
4) This type of fraud often results from the continuance of an employee on the payroll after the employee has been terminated.

Answer 1

Nonexistent employees can continue to receive pay even after termination, resulting in fraud.

Step-by-step explanation:

An accurate statement regarding nonexistent employees is that this type of fraud often results from the continuance of an employee on the payroll after the employee has been terminated. In some cases, organizations may overlook terminating an employee in their payroll system, allowing them to still receive pay even though they are no longer employed. This can lead to financial losses for the company.