A company uses a bank to process its weekly payroll. Time sheets and payroll adjustment forms
(e.g., hourly rate changes, terminations) are completed and delivered to the bank, which prepares
checks (cheques) and reports for distribution. To BEST ensure payroll data accuracy:

A.
payroll reports should be compared to input forms.

B.
gross payroll should be recalculated manually.

C.
checks (cheques) should be compared to input forms.

D.
checks (cheques) should be reconciled with output reports.

Explanation:

The best way to confirm data accuracy, when input is provided by the company and output is
generated by the bank, is to verify the data input (input forms) with the results of the payroll
reports. Hence, comparing payroll reports with input forms isthe best mechanism of verifying data
accuracy. Recalculating gross payroll manually would only verify whether the processing is correct
and not the data accuracy of inputs. Comparing checks (cheques) to input forms is not feasible as
checks (cheques)have the processed information and input forms have the input datA. Reconciling
checks (cheques) with output reports only confirms that checks (cheques) have been issued as
per output reports.