Question

A company's internal controls policies may mandate the distribution of paychecks by an independent paymaster in order to determine that:

a) payroll deductions are properly authorized and computed
b) pay rates are properly authorized and separate from the operating function
c) each employee's paycheck is supported by an approved time sheet
d) employees included in the period's payroll register actually exist and are currently employed

Answer 1

A company's internal controls policies may mandate the distribution of paychecks by an independent paymaster to ensure proper authorization and computation of payroll deductions, accurate support for paychecks with approved time sheets, and verification of the existence and employment status of employees.

Step-by-step explanation:

A company's internal controls policies may mandate the distribution of paychecks by an independent paymaster to ensure that:

1. Payroll deductions are properly authorized and computed: By having an independent paymaster distribute paychecks, the company can ensure that the deductions taken from employee wages, such as taxes or insurance premiums, are accurately calculated and authorized.
2. Each employee's paycheck is supported by an approved time sheet: The use of an independent paymaster helps verify that each employee's paycheck is based on their approved hours worked as documented on a time sheet.
3. Employees included in the period's payroll register actually exist and are currently employed: The independent paymaster can verify that the employees listed on the payroll register are legitimate and currently employed by the company.