A large retail enterprise has established a policy which requires that the paymaster deliver all unclaimed payroll checks to the internal auditing department at the end of each payroll distribution day. This policy was most likely adopted in order to
a. Assure that employees who were absent on a payroll distribution day are not paid for that day.
b. Prevent the paymaster from cashing checks which are unclaimed for several weeks.
c. Prevent a bona fide employee's check from being claimed by another employee.
d. Detect any fictitious employee who may have been placed on the payroll.
Answer: D
CPA Exam
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