Day: March 9, 2026

A deficiency has been identified in the following area of the company’s wages system, as outlined below.

For the stated deficiency, select the risk which is MOST likely to arise.

-Details of wages are not regularly checked in the personnel file.

Select ONE answer:

1. Pay might not be recorded correctly in the general ledger
2. Payments might be made incorrectly
3. The company may pay employees who have left
4. The various elements of pay might not be calculated correctly

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 3

1. Not correct
2. Not correct
3. Correct – The deficiency arises when calculating wages and salaries: a failure to check wages to the personnel file could result in an employee who has left (which would be recorded on the file) being included on the payroll. The recording of pay in the general ledger would not be directly affected by this.
4. Not correct

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