Employee payroll fraud scheme


Which of the following circumstances most likely would cause an auditor to suspect an employee payroll fraud scheme?

a) Payrolls checks are disbursed be the same employee each payday.

b) There are significant unexplained variances between standard and actual labor cost.

c) Employee time cards are approved by individual departmental supervisors.

d) A separate payroll bank account is maintained on an imprest basis.

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Accounting Basics: Employee payroll fraud scheme
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