Question

Which of the following activities related to payroll is not an effective control plan?

(A) After their preparation, paychecks should be delivered directly to the employees' supervisors for distribution to the employees.
(B) Approve imprest clearing check.
(C) Approve attendance time data and job time data.
(D) Paychecks should be drawn on an imprest payroll bank account.

Answer 1

The activity related to payroll that is not an effective control plan is delivering paychecks to supervisors for distribution.

Step-by-step explanation:

The activity related to payroll that is not an effective control plan is (A) After their preparation, paychecks should be delivered directly to the employees' supervisors for distribution to the employees. This control plan is not effective because it creates an opportunity for the supervisors to manipulate or mishandle the paychecks, leading to potential fraud or errors in distribution. Instead, it is recommended to deliver paychecks directly to the employees themselves, or to use secure and traceable methods of distribution.