Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Payroll: Risks and Controls Below are some of the processes that are typically executed before, during, and after a payroll cycle: Employees record their hours

Payroll: Risks and Controls

Below are some of the processes that are typically executed before, during, and after a payroll cycle:

  • Employees record their hours worked.
  • The supervisor reviews and approves each employee's time records with their signature.
  • An officer from the Human Resources department updates employee files after receiving authorized records of overtime and leaves (vacations, illness, etc.) from the supervisor. Afterward, approved records are sent to the payroll officer in the accounting department.
  • The payroll officer calculates the gross payment, applies deductions, and calculates the net payment. Subsequently, the final payroll is sent for the controller's approval.
  • Payments are issued to employees using their preferred delivery method (check or direct deposit).
  • Entries are generated for the corresponding payroll transactions.
  • Withholdings for payroll taxes, Social Security, and Medicare are respectively remitted to the Department of Treasury and the Internal Revenue Service.
  • A record of the final payroll is generated, which is shared with the cash disbursement department, where it is archived.

Depending on the company's size, this process can be carried out entirely manually or electronically.

1. Create a flowchart of the payroll system, assuming that the entire process will be conducted electronically. Divide the diagram into processes related to the employee, the supervisor, and the payroll and human resources departments.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Internal Auditors For Stock Brokers

Authors: National Institute Of Securities Markets (NISM)

1st Edition

9350717581, 978-9350717585

More Books

Students also viewed these Accounting questions