Question 216.6 Points

As the internal auditor for No-Wear Products, you have been asked to document the companys payroll processing system. Based on your documentation, No-Wear hopes to develop a plan for revising the current system to eliminate unnecessary delays in paycheck processing. The head payroll clerk explained the system:

The payroll processing system at No-Wear Products is fairly simple. Time data are recorded in each department using timecards 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 timecard data into a payroll file for processing. Our clerks are pretty goodthough Ive 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, its 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 paychecks are generated. Several reports are generated for managementthough I dont 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.

a. Prepare a context diagram to document the payroll processing system at No-Wear Products.

b. Prepare a document flowchart to document the payroll processing system at No-Wear Products.

c. Prepare a BPD to document the payroll processing system at No-Wear Products.