Day: March 11, 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.

• Regular reconciliations of the wages and salaries control account are not performed.

Select ONE answer:

1. Payments might be made incorrectly
2. Pay might not be recorded correctly in the general ledger
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 1

1. Correct – The deficiency arises after the calculation of the payroll, so although it might expose errors in that calculation it is more likely to expose errors in the amount paid/general ledger.
2. Not correct
3. Not correct
4. Not correct

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