Comprehensive and Detailed Explanation:Internal controlsare processes used to ensureaccuracy, security, and compliancein payroll operations. Effective internal controls include:
Option B (Segregating job duties)→ Prevents fraud by ensuring no one person has full control over payroll.
Option C (Rotating job duties)→ Reduces fraud risk and enhances cross-training.
Option D (Restricting system access)→ Protects sensitive payroll data.
Option A (Storing backup files on-site) is incorrectbecause internal control best practices recommendoff-site or cloud backupsto protect againstdata loss from disasters.
[Reference:, Payroll.org – Payroll Internal Control Procedures, IRS – Best Practices for Payroll Security, , ]
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