The company employs more than 200 employees across 3 factory shifts, and overtime is worked where necessary, ABC has the following payroll procedures:

• The HRM interviews and hires all new employees. A form authorizing the addition of a new employee, including agreed wage rates, is sent to the payroll officer for interview and approval. Once this form is entered as per the system, differential shift and overtime rates are automatically calculated
• Employees record their time worked on time cards. Every Monday, the prior week’s time cards are collected. The payroll officer reviews these cards for any calculation errors and enters the hours into the system. If no time card is present, an employee is not paid
• Payroll payment is made via EFT by the payroll officer, and payslips are printed and distributed by the shift supervisor to employees
• The payroll master file is backed up monthly

A) Identify and explain 4 threats to the hiring and payroll processing procedures of ABC.

B) For each threat identified in part A, suggest 1 control that could be put into place to mitigate the threats to ABC hiring and payroll processes in procedures.

Answer rating: 100% (QA)

A Threats to Hiring and Payroll Processing Procedures Unauthorized Access and Data Breach If unauthorized individuals gain access to the payroll syste... View the full answer