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Accounting payroll risk and fraud

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A potential control for managing the risk of employee fraud is to send employees on mandatory vacations. Explain the relation of that control with the payroll function. Why will it be a good idea to require the payroll clerk, who writes checks, to go on a vacation? Provide examples from real life and discuss and share your experiences if any.

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Why will it be a good idea to require the payroll clerk, who writes checks, to go on a vacation?

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This control is common because if there is a mistake that is being made consistently, it may not be noticed unless it is not made for a week or so. For example, an employee who is also a bank teller can be off by $100 and pocket the money. If she's always $100 off, her drawer will balance ...

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