Académique Documents
Professionnel Documents
Culture Documents
15-1
Learning Objectives
Describe the major business activities and related information processing operations performed in the human resources management (HRM)/payroll cycle.
Discuss the key decisions to be made in the HRM/payroll cycle and identify the information needed to make those decisions. Identify the major threats in the HRM/payroll cycle and evaluate the adequacy of various internal control procedures for dealing with them.
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Compensation
Performance evaluation Discharge of employees due to voluntary or involuntary termination
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Payroll Cycle
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4. Distribute payroll
5. Disburse taxes and miscellaneous deductions
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Changes in withholdings
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Validation Threats
Inaccurate time and attendance data
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Validation Controls
Source data automation for data capture
Biometric authentication Segregation of duties (reconciliation of job-time tickets to time cards) Supervisory review
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Prepare Payroll
Edit and sort payroll transaction data
Prepare employee paychecks
Calculate gross pay Deductions summed and deducted from gross pay to obtain net pay Categories of deductions: Payroll tax withholdings Voluntary deductions
Update year-to-date fields for gross pay, deductions, and net pay
Create payroll and deductions registers Print employee paychecks and earnings statement
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Disburse Payroll
Accounts payable reviews and approves payroll register
Prepare disbursement voucher to authorize transfer of funds from general checking to payroll bank account Update general ledger Cashier prepares check or EFT to transfer funds Distribute checks or initiate direct deposits to employee accounts
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