6 terms

H/R and Payroll threats and controls

Hiring unqualified or larcenous employees
sound hiring procedure, including verification of job applicant's skills, references, and employment history
violation of employment law
thorough documentation of hiring and discharge procedures; training on current developments in employment law
unauthorized changes to payroll master file
segregation of duties; HRM, payroll calculation, and paycheck distribution; access controls; audit and review of all changes to payroll master file
inaccurate time data
automation of data collection; various edit checks; reconciliation of time card data with job-time ticket data
inaccurate processing of payroll
batch totals and other application controls; payroll clearing account; review of IRS regulations
theft or fraudulent distribution of paychecks
direct deposit; paycheck distribution by someone independent of payroll process; investigation of unclaimed paychecks; restricted access to blank paychecks; prenumbering and periodic accounting for all paychecks; use of separate payroll checking account, maintained as an imprest fund; reconciliation of payroll bank account by someone not involved in payroll processing