Ray Bus Lines has a small office staff, with most of their employees being bus drivers. Therefore, they have one person who hires bus drivers and prepares all employment paperwork, one person who oversees scheduling and records staff timesheets, and one person who prepares and pays the payroll. Why might this arrangement be problematic for Ray Bus Lines? a.They are missing the internal control of two different people preparing and paying the payroll. b. They are missing the internal control of two different people hiring drivers and preparing employment paperwork. c. They are missing the internal control of two different people overseeing schedules and recording timesheets. d. They are missing the internal control of having the same person record timesheets and prepare the payroll.
Ray Bus Lines has a small office staff, with most of their employees being bus drivers. Therefore, they have one person who hires bus drivers and prepares all employment paperwork, one person who oversees scheduling and records staff timesheets, and one person who prepares and pays the payroll. Why might this arrangement be problematic for Ray Bus Lines? a.They are missing the internal control of two different people preparing and paying the payroll. b. They are missing the internal control of two different people hiring drivers and preparing employment paperwork. c. They are missing the internal control of two different people overseeing schedules and recording timesheets. d. They are missing the internal control of having the same person record timesheets and prepare the payroll.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ray Bus Lines has a small office staff, with most of their employees being bus drivers. Therefore, they have one person who hires bus drivers and prepares all employment paperwork, one person who oversees scheduling and records staff timesheets, and one person who prepares and pays the payroll. Why might this arrangement be problematic for Ray Bus Lines?
a.They are missing the internal control of two different people preparing and paying the payroll.
b. They are missing the internal control of two different people hiring drivers and preparing employment paperwork.
c. They are missing the internal control of two different people overseeing schedules and recording timesheets.
d. They are missing the internal control of having the same person record timesheets and prepare the payroll.
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