What is the relation of that control with the payroll function. Why will it be a good idea to require the payroll clerk, who writes checks, to go on a vacation? Provide examples from real life and discuss.A potential control for managing the risk of employee fraud is to send employees on mandatory vacations?
This is a good internal control because it will easily show suspicious activity such as stealing or fraud. if you require the check writer to go on vacation and you notice less cash is leaving the business or something along those lines, then you know that the employee that went on vacation was generating checks for non-business related matters, which is fraud. Due to the vacation, you realize this and can fire the fraudulent employee
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