Day: February 22, 2026

Alex Manufacturing Ltd employs several trainees who start every six months.

All trainees must complete a six-month probationary period before progressing to the next level of the traineeship.

The external accountant providing assurance on the efficiency of the controls’ operation has identified the following deficiency in Alex Manufacturing Ltd’s payroll system.

For the deficiency stated below, select the most likely consequence which might arise because of that deficiency.

• Employees are not given a personnel file until they have completed their six-month probationary period.

Select ONE answer:

1. The computerised payroll may contain miscalculations in the wage rate
2. There is NO impact on the efficiency of the controls
3. The impact on the controls is not material and requires no action
4. There is a high risk that the trainees will be paid the wrong amounts

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

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