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    Mock 5

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    kingsters bravo
    The document outlines several control deficiencies in an organization's payroll processes and recommendations to address them. Key issues identified include a lack of proper authorization of holidays and overtime worked, inadequate record keeping of paid time off and cash wages, and potential segregation of duties conflicts. Recommendations provided are to implement procedures requiring authorization of paid time off and overtime hours worked, maintain accurate payroll records, separate payroll preparation and payment authorization duties, and establish controls over bonus determinations and payments.

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    Mock 5

    Uploaded by

    kingsters bravo
    12 views2 pages
    The document outlines several control deficiencies in an organization's payroll processes and recommendations to address them. Key issues identified include a lack of proper authorization of holidays and overtime worked, inadequate record keeping of paid time off and cash wages, and potential segregation of duties conflicts. Recommendations provided are to implement procedures requiring authorization of paid time off and overtime hours worked, maintain accurate payroll records, separate payroll preparation and payment authorization duties, and establish controls over bonus determinations and payments.

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    mock 5

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    The document outlines several control deficiencies in an organization's payroll processes and recommendations to address them. Key issues identified include a lack of proper authorization of holidays and overtime worked, inadequate record keeping of paid time off and cash wages, and potential segregation of duties conflicts. Recommendations provided are to implement procedures requiring authorization of paid time off and overtime hours worked, maintain accurate payroll records, separate payroll preparation and payment authorization duties, and establish controls over bonus determinations and payments.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    12 views2 pages

    Mock 5

    Uploaded by

    kingsters bravo
    The document outlines several control deficiencies in an organization's payroll processes and recommendations to address them. Key issues identified include a lack of proper authorization of holidays and overtime worked, inadequate record keeping of paid time off and cash wages, and potential segregation of duties conflicts. Recommendations provided are to implement procedures requiring authorization of paid time off and overtime hours worked, maintain accurate payroll records, separate payroll preparation and payment authorization duties, and establish controls over bonus determinations and payments.

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    © All Rights Reserved
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     Control deficiencies  Control recommendations

     Department managers are required to  All the holidays should be authorized


    approve all the holidays however this and notify the approval of holidays
    does not always occur  No employees should be allowed to
     Due to this, employees will take excess take holiday without the approval
    holidays and cause shortage of  Records should be reviewed for the
    employees further more the employees payment of untaken holidays
    will not get paid for untaken holidays as
    the record is not well maintain
     Finance controller prepares the bank  Authorization should be performed by
    transfer data and authorize it the another individual rather than the
     Due to lack of segregation of duty there person preparing the data and
    could be fraud of payment of fake processing it.
    employees as the authorization is
    performed by the finance controller
    himself.
     The reports generated from the payroll  There should be a separate individual
    system is changed by the payroll clerk of reviewing the amended the report of
    and not been reviewed the payroll and authorize it.
     Lack of segregation of duty which may
    cause the report amended in the
    advantage of the payroll clerk
     All the overtime worked performed  All the overtime should be authored
    over the five hours are authorized and supervise will the employees are
     The drivers will claim the overtime performing the overtime a system
    performed up to five hours causing the should be available which can correctly
    payment of payroll cost in excess record the overtime work performed

     Name of the driver is required to  All the payment should be made to the
    receive the wages in cash and the employees with the unique identity
    record is also not maintained cards and the agree with the records to
     As any individual could claim to be pay the cash payment physically so that
    employee of the organization and payment should not be made to fake
    receive the cash this will result in cash employees
    payment to fake employees and
    increase in payroll cost
     Operation manager decides the bonus  A record should be maintained for
    amount and whom it will be paid, performance record of the drivers and
    however the amounts should be on the performance basis the bonus
    reviewed by the payroll department should be set and calculated by the
     As the bonuses are not reviewed and payroll system
    the performance as basis is also not  Calculation should be reviewed by the
    recorded which may result in payment on quarterly basis before paying the
    of excess bonus. bonus.

    Key control Test of control


     There is camera recording system to  We will observe that there are cameras
    monitor the employees while time in available at clocking in process and
    and out. All the records are kept safe ensure that the cameras are working
    and reviewed. properly so that id cards would be used
    by the individual itself

     All the records in the HR department  Obtain the spreadsheets were the
    are reviewed and kept up to date and reviewer name is maintained to
    the records of the reviewer is also confirm that the review is performed
    maintain with his personal and record is available
    identification
     The calculations of payroll are  Entering the hours worked data of a
    performed by an Integrated system and fake employees to ensure whether the
    the system by itself perform all system rejects it.
    deductions and update the records.
    Due less interaction of a human
    chances of errors will reduce
     The payroll system is protected by a  Verify that the passwords are updated
    password and the password is by inspecting the monthly records and
    generated by an IT system. Due to this they are only known by senior
    the access of confidential data will be responsible person
    restricted  Inspect from past records that the pass
    is strong and not in only one sequence.

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