As the internal auditor for Elegant Firm, you have been asked to document the company's payroll processing system. Based on your documentation, Elegant Firm hopes to develop a plan for revising the current system to eliminate unnecessary delays in pay check processing. The head payroll clerk explained the system: The payroll processing system at Elegant Firm is fairly simple. Time data are recorded in each department using time cards and clocks. It is annoying, however, when people forget to punch out at night, and we have to record their time by hand. At the end of the period, our payroll clerks enter the time card data into a payroll file for processing. Our clerks are pretty goodthough I've had to make my share of corrections when they mess up the data entry. Before the payroll file is processed for the current period, human resources sends us personnel changes, such as increases in pay rates and new employees. Our clerks enter this data into the payroll file. Usually, when mistakes get back to us, it's because human resources is recording the wrong pay rate or an employee has left and the department forgets to remove the record.

The data are processed and individual employee pay checks are generated. Several reports are generated for management, though I don't know what they do with them. In addition, the government requires regular federal and state withholding reports for tax purposes. Currently, the system generates these reports automatically, which is nice. You are required to: 1. context diagram to document the payroll processing system at Elegant Firm. 2. document flowchart to document the payroll processing system at Elegant Firm.