ICAEW ARF · Chapter 6 · Question 2 of 11
Which control best reduces the risk of hourly paid staff being paid for hours they did not work?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Clocking-in is supervised and timesheets are approved by the employee's supervisor before payroll processing
Explanation
Supervised clocking-in prevents one employee clocking in for another, and supervisor approval of timesheets confirms that the hours recorded were worked. Paying by bank transfer, reconciling deductions and reviewing rates are useful controls but do not address whether the hours claimed are genuine.
More Controls over payroll, inventory and cash MCQs
- Q4Which of the following is a physical control over inventory?
- Q5During a year-end inventory count, count sheets are sequentially numbered, issued to count teams and accounted for at the end of the…
- Q6A client uses a perpetual inventory system with continuous counting instead of a full year-end count. Which of the following would be…
- Q7Which of the following controls mainly addresses the valuation of inventory, rather than its existence or completeness?
- Q8What is the main purpose of a company preparing a monthly bank reconciliation that is reviewed by someone independent of the cash book?