Day: February 27, 2026

Alex Manufacturing Ltd has a computerised payroll system.

All employees are paid by BACS directly into their bank accounts.

Which ONE of the following controls will be MOST effective at ensuring that payment is made to the correct employee?

Select ONE answer:

1. The printout from the bank is agreed to the BACS list, and any discrepancies are investigated
2. Authorisation of overtime worked
3. A sample of calculations performed by the payroll package is manually reperformed each month
4. The BACS list is reviewed by the junior temporary payroll employee together with supporting payroll documentation

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 1

1. Correct – Options 2 and 3 are not correct as authorisation of overtime ensures that the correct number of hours are paid for and reperformance of payroll calculations ensures the accuracy of the deductions, etc.
2. Not correct
3. Not correct
4. Not correct

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