Answer (D) is correct. The payroll department is responsible for assembling payroll information (recordkeeping). The personnel department is responsible for authorizing and executing employee transactions such as hiring, firing, and changes in pay rates and deductions. Segregating these functions helps prevent fraud. Thus, the payroll for each period should be compared with the active employment files of the personnel department. Authorization by the personnel department is the only control placed in the transaction flow early enough to prevent the addition of bogus employees to the payroll.