To best ensure payroll data accuracy, what is the most effective action for an organization using a bank for payroll processing?

To ensure payroll data accuracy, comparing payroll reports to input forms is the most effective action for an organization using a bank for payroll processing. This approach provides a direct verification of the data entered during payroll processing. Each input form represents the raw data collected for payroll, including employee hours, salary rates, and any adjustments such as overtime or deductions. By comparing the final payroll reports—produced after processing with the bank—to the original input forms, discrepancies can be identified and rectified before disbursement occurs.

This method of reconciliation is crucial because it captures any errors that may have occurred during data entry or processing, ensuring that the payroll accurately reflects what was intended and that employees are paid correctly. It establishes a strong audit trail and is essential for any organization to uphold accuracy in their payroll functions.

Other choices, while they may contribute to data accuracy, do not provide the same level of comprehensive validation. For example, recalculating gross payroll manually or reconciling checks with output reports can help catch some errors but do not ensure that every aspect of the payroll data matches the original input, which is critical for thorough accuracy checks.