A. People who make disbursements should not also reconcile the bank statement. Making disbursements is a custody function, whereas reconciling the bank statement is a reconciliation function. If the same person were to perform both of these functions, that person could have an opportunity to misappropriate funds and conceal the misappropriation.

B. Foreign currency translation rates are set by the market and can be checked and verified, but they are not computed.

C. Having the headquarters office approve the hiring of individual branch employees does not relate to internal control but rather to where authority in the organization is assigned.

D. Distributing payroll checks to employees is a custody function. Assuming the branch manager does not have any other duties that are incompatible with performing a custody function, there is nothing wrong with the branch manager distributing payroll checks to employees.