Question

"Physical control over assets" is not a type of control that is applicable to the payroll cycle?

1) True
2) False

Answer 1

The statement that physical control over assets is not applicable to the payroll cycle is false. Physical control is critical in preventing fraud and unauthorized access in the payroll process.

Step-by-step explanation:

The statement "Physical control over assets" is not a type of control that is applicable to the payroll cycle is false. Physical control over assets is actually a crucial aspect of internal control systems in any financial cycle, including the payroll cycle.

For instance, physical control over assets such as timecards, paychecks, and payroll records helps to prevent theft, fraud, and unauthorized access to sensitive information.

In the payroll cycle, measures like locked file cabinets for storing payroll records, restricted access to payroll systems, and security cameras can help to ensure that employees' compensation is handled accurately and securely.