SOFA-CFE · Question #392
Ghost employee schemes can be uncovered by having personnel distribute the payroll checks and by requiring positive identification of the payee.
The correct answer is A. True. A (True) is correct because requiring managers or supervisors - rather than payroll staff - to personally hand out paychecks forces each recipient to physically appear and prove their identity. A ghost employee (a fictitious or terminated worker added to payroll to siphon…
Question
Ghost employee schemes can be uncovered by having personnel distribute the payroll checks and by requiring positive identification of the payee.
Options
- ATrue
- BFalse
How the community answered
(23 responses)- A83% (19)
- B17% (4)
Explanation
A (True) is correct because requiring managers or supervisors - rather than payroll staff - to personally hand out paychecks forces each recipient to physically appear and prove their identity. A ghost employee (a fictitious or terminated worker added to payroll to siphon funds) cannot collect a check in person, making the scheme immediately visible.
B is wrong because there is no scenario where these controls fail to help detect ghost employees - they are recognized best practices in internal controls for payroll fraud prevention. The question describes a genuinely effective detection method, so "False" misrepresents the control's value.
Memory tip: Think of it as a "show your face" rule - ghosts can't show up in person. If paychecks require a live body with valid ID to collect them, fictitious employees are exposed instantly.
Community Discussion
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