Asked by MATTHEW NESTER on Jul 22, 2024
Verified
The use of a separate payroll bank account is not an advantageous control, because it creates more complexity in reconciliation functions for a company and invites theft.
Payroll Bank Account
A dedicated bank account used by businesses to manage and process employee payrolls, ensuring funds are available for direct deposits and payroll checks.
Reconciliation Functions
The process of ensuring that two sets of records or accounts are in agreement, often used in accounting to match bank statements with ledgers.
- Recognize the control benefits and considerations of using a separate payroll bank account.
Verified Answer
SJ
Sonet JacksiJul 26, 2024
Final Answer :
False
Explanation :
A separate payroll bank account is actually an advantageous control for a company. It helps to ensure that only authorized payroll transactions are made, prevents commingling of company funds, and simplifies reconciliation functions. It also makes it easier to detect fraudulent activity or errors.
Learning Objectives
- Recognize the control benefits and considerations of using a separate payroll bank account.