Due to a recent system upgrade, an audit is planned to test the payroll process. Which of the following audit objectives would be most important to prevent fraud?

Question

Options

• AVerify that amounts are correct.
• BVerify that payments are on time.
• CVerify that recipients are valid employees.
• DVerify that benefits deductions are accurate.

• A
  6% (2)
• B
  8% (3)
• C
  75% (27)
• D
  11% (4)

Explanation

Verifying that recipients are valid employees is crucial in preventing payroll fraud. This audit objective ensures that only legitimate employees receive payments, thereby mitigating the risk of ghost employees or payments to terminated employees. While verifying amounts, payment timeliness, and benefit deductions are important, ensuring the validity of recipients directly addresses the potential for fraudulent activities in the payroll process.

No community discussion yet for this question.