Discuss the procedures involved in, and the purpose of, a surprise payroll payoff.

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Discuss the procedures involved in, and the purpose of, a surprise payroll pay off.


Answer:

A surprise payroll pay off is a procedure in which each employee must pick up and sign for his or her check in the presence of a supervisor and the auditor. Any checks that are not claimed are subject to an extensive investigation to determine whether an unclaimed check is fraudulent. The purpose is to test for nonexistent employees; that is, the issuance of payroll checks to individuals who do not work for the company.

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