Question

Organizational independence in the processing of payroll is achieved by functional segregations that are built into the system. Which one of the following functional segregations is not required for internal control purposes?

Answer 1

The answer is option D) The functional segregation is not required for internal control purposes is separation of payroll preparation and maintenance of year-to-date records.

Step-by-step explanation:

Segregation of Duties is the system of assigning more than one person to complete a task.

In business the separation by sharing of more than one individual in one single task is an internal control intended to prevent fraud and error.

This concept ensures that there is oversight and review to catch errors and presents checks and balances within an organization to mitigate fraud and error.

Therefore, separation of payroll preparation and maintenance of year-to-date records does not apply.

Answer 2

Complete Question:

Organizational independence in the processing of payroll is achieved by functional segregations that are built into the system. Which one of the following functional segregations is not required for internal control purposes?

A. Separation of timekeeping from payroll preparation.

B. Separation of personnel function from payroll preparation.

C. Separation of payroll preparation and paycheck distribution.

D. Separation of payroll preparation and maintenance of year-to-date records.

Answer:

D. Separation of payroll preparation and maintenance of year-to-date records.

Step-by-step explanation:

Separation of payroll preparation and maintenance of year-to-date records is not required for internal control purposes.