Asked by Liang Susan on Apr 27, 2024
Verified
Internal controls for cash payments apply to payrolls.
Internal Controls
Methods and policies established by a company to guarantee the accuracy of finance and accounting data, encourage responsibility, and deter deceptive practices.
Cash Payments
Outflows of cash by a business to settle obligations, such as paying expenses, debts, or purchasing assets.
- Recognize the significance of incorporating internal controls in the oversight of cash disbursements and payroll management.
Verified Answer
MA
Melissa AliottaApr 28, 2024
Final Answer :
True
Explanation :
Internal controls for cash payments, such as segregation of duties, documentation, and authorization, should also apply to payrolls to prevent errors and fraud.
Learning Objectives
- Recognize the significance of incorporating internal controls in the oversight of cash disbursements and payroll management.