Final answer:
The internal control method used to require employee identification before payment to prevent phantom employees is D) 'Verifying'. It is a crucial step to ensure payroll accuracy and prevent fraud.
Step-by-step explanation:
The internal control method that requires employees to show identification before getting paid, thereby preventing payments to nonexistent, or phantom employees, is Verifying.
This method is crucial to ensure that the payroll is accurate and is going to legitimate employees of the company. By asking employees to present identification at the time of payment.
the company can effectively reduce the risks associated with fraudulent payroll activities such as paying phantom employees, who do not actually work for the company.
Other internal control methods such as job rotation, physical payouts, and system edits have other purposes in safeguarding a company's assets and ensuring the integrity of financial records.