b. Excess Payments to Employees Increasing the rate above that approved or paying employees for more hours than they worked are the most common ways of paying employees more than they are entitled to receive. These practices can be substantially reduced by requiring personnel department officials to authorize changes in pay rates and by monitoring total hours worked and paid for. Analytical procedures that focus on cost per unit of actual production can also be helpful in detecting excess payments to employees.
b. Excess Payments to Employees Increasing the rate above that approved or paying employees for more hours than they worked are the most common ways of paying employees more than they are entitled to receive. These practices can be substantially reduced by requiring personnel department officials to authorize changes in pay rates and by monitoring total hours worked and paid for. Analytical procedures that focus on cost per unit of actual production can also be helpful in detecting excess payments to employees.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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EXPLAIN IT SIMPLE AND BRIEFLY. YOU CAN ALSO INCLUDE EXAMPLES.
Transcribed Image Text:b. Excess Payments to Employees
Increasing the rate above that approved or paying employees
for more hours than they worked are the most common ways
of paying employees more than they are entitled to receive.
These practices can be substantially reduced by requiring
personnel department officials to authorize changes in pay
rates and by monitoring total hours worked and paid for.
Analytical procedures that focus on cost per unit of actual
production can also be helpful in detecting excess payments
to employees.
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