Final answer:
Most monetary misstatements in payroll are corrected by a company's internal verification controls, not by the PCAOB. The PCAOB is a regulatory body for public company audits, while internal controls are established by management to assure financial accuracy.
Step-by-step explanation:
It is false that most monetary misstatements of payroll are corrected by the Public Company Accounting Oversight Board (PCAOB). In reality, companies typically have their own internal verification controls that are designed to identify and correct errors or irregularities in payroll. These controls are part of a company's internal control system, which is a process for assuring the accuracy and reliability of financial and accounting information.
Internal verification controls can include procedures like reconciliation, regular internal audits, segregation of duties, and management review. It is the responsibility of a company's management and internal audit team to ensure that these controls are in place and functioning effectively. The PCAOB, on the other hand, is a regulatory body that oversees the audits of public companies to protect the interests of investors. The Los Angeles Times story from 1963 about a bookkeeper who testified against her employer for falsifying workers' records underscores the importance of maintaining effective internal controls to prevent payroll misstatement and fraud.