OCPS Risk Assessment & Mitigation 2

Question 1

Which control type is BEST suited to prevent unauthorized payroll file modifications before they occur?

Accepted Answer

Preventive control

Answer

Preventive controls are designed to stop unauthorized actions from occurring in the first place, unlike detective controls which identify issues after the fact.

Question 2

A payroll manager discovers that a terminated employee received two paychecks after their separation date. Which risk category does this PRIMARILY represent?

Accepted Answer

Operational risk

Answer

Payments to terminated employees result from failures in internal processes or controls, which classifies them as operational risk.

Question 3

What is the purpose of a payroll reconciliation control?

Accepted Answer

To detect discrepancies between payroll records and bank disbursements

Answer

Payroll reconciliation compares processed payroll totals against actual bank disbursements to identify errors or unauthorized payments.

Question 4

Under SOX compliance, which payroll risk is addressed by requiring dual authorization for payroll disbursements?

Accepted Answer

Fraudulent disbursement risk

Answer

Dual authorization (segregation of duties) directly mitigates fraudulent disbursement risk by requiring two approvers before funds are released.

Question 5

A company processes payroll for employees in 12 states. Which risk escalation factor is MOST relevant to this scenario?

Accepted Answer

Multi-jurisdictional tax compliance risk

Answer

Operating across multiple states multiplies tax withholding, unemployment insurance, and reporting obligations, significantly increasing multi-jurisdictional compliance risk.

(OCPS) Online Certified Payroll Systems Certified Professional Practice Test

(OCPS) Online Certified Payroll Systems Certified Professional Practice Test

OCPS Risk Assessment & Mitigation 2