Requirement b. For each internal control, identify the transaction-related audit objective(s) to which it applies. Transaction-related audit Internal control objective(s) Human resource policies require an investigation of an employment application from new employees. Investigation includes checking the employee's background, former 1. employers, and references. Approval of department head or foreman on time records is required before preparing 2. payroll Accuracy All prenumbered time records are accounted for before beginning data entry for 3. preparation of payroll. Accuracy and Occurence Classification The payroll accounting software calculates gross and net pay based on hours inputted and information in employee master files, and payroll accounting personnel double- 4. check the mathematical accuracy on a test basis. Completeness Occurence The payroll accounting software application will not accept data input for an employee 5. number not contained in the employee master file. Posting and summarization Presentation Persons preparing the payroll do not perform other payroll duties (e.g., human resources 6. or approval of time records) nor do they have access to payroll data master files or cash. Timing Written termination notices, with properly documented reasons for termination, and 7. approval by an appropriate official are required. All checks and notices of electronic payments not distributed to employees are returned 8. to the treasurer for safekeeping and follow-up Online ability to add employees or change pay rates to the payroll master file is restricted 9. via passwords to authorized human resource personnel