Which control procedure does NOT help prevent payroll fraud?

Having the payroll preparer sign all checks does not help prevent payroll fraud because it creates a situation where the individual responsible for preparing the payroll is also in a position to authorize payments. This lacks a critical segregation of duties, which is essential for maintaining effective internal controls. Allowing the same person to manage and approve both payroll preparation and disbursement increases the risk of fraudulent activities, such as creating fictitious employees or diverting funds.

In contrast, the other control procedures enhance the integrity and accuracy of payroll processing. Separating personnel records from payroll functions ensures that there is no conflict of interest, minimizing the risk that someone could manipulate payroll records for personal gain. Keeping payroll independent of the general ledger allows for independent verification and reduces the risk of misstatement or fraud, while prenumbering payroll checks ensures that all payments are tracked and accounted for, making it harder to issue unauthorized checks without detection. These measures collectively contribute to a stronger control environment that mitigates the risk of payroll fraud.