Requirement a. For each internal control, identify the type(s) of specific control activity (or activities) to which it applies (such as adequate documents and records or physical control over assets and records). Internal control Control activity(ies) Human resource policies require an investigation of an employment application from new employees. Investigation includes checking the 1. employee's background, former employers, and references. Approval of department head or foreman on time records is required 2. before preparing payroll. Adequate documents and records All prenumbered time records are accounted for before beginning data 3. entry for preparation of payroll. Adequate segregation of duties and proper authorization of transactions and activities The payroll accounting software calculates gross and net pay based Adequate separation of duties on hours inputted and information in employee master files, and Independent check on performance payroll accounting personnel double-check the mathematical accuracy Proper authorization of transactions and activities 4. on a test basis. The payroll accounting software application will not accept data input Proper authorization of transactions and activities and adequate documents and records 5. for an employee number not contained in the employee master file. Proper authorization of transactions and activities and adequate separation of duties Persons preparing the payroll do not perform other payroll duties (e.g., Physical control over assets and records and adequate segregation of duties human resources or approval of time records) nor do they have access 6. to payroll data master files or cash. Written termination notices, with properly documented reasons for 7. termination, and approval by an appropriate official are required. All checks and notices of electronic payments not distributed to 8. employees are returned to the treasurer for safekeeping and follow-up. Online ability to add employees or change pay rates to the payroll master file is restricted via passwords to authorized human resource 9. personnel