Question

Which controls would improve accountability in cash payroll systems?

A) Ledger entries of the payroll

B) Locking cash box

C) Signed receipts

D) Time cards for employees

Answer 1

To improve accountability in cash payroll systems, businesses can implement ledger entries of the payroll, signed receipts, and time cards for employees.

Step-by-step explanation:

In order to improve accountability in cash payroll systems, the following controls can be implemented:

1. Ledger entries of the payroll: Keeping detailed records of payroll transactions in a ledger helps to track and monitor cash flow, ensuring accuracy and transparency.
2. Signed receipts: Requiring employees to sign receipts upon receiving their pay helps to establish a documented trail of cash disbursement.
3. Time cards for employees: Having employees clock in and out with time cards provides a means to verify hours worked and helps detect any potential discrepancies in the payroll system.

By implementing these controls, businesses can enhance accountability in cash payroll systems, reducing the risk of fraud or errors.