Payroll

Question 1

Identify three access controls applicable to the payroll transaction cycle.

Answer 1

1. )Access to personnel files should be limited to authorized personnel.
2. )Access to payroll checks should be limited to authorized personnel.
3. )Personnel with access to payroll checks should be bonded.

Question 2

What comparisons should be made within the entity to ensure the appropriateness of payroll transactions?

Answer 2

1. )Payroll information should be periodically matched to information in personnel files.
2. )Payroll checks should be compared to entries on the payroll register.
3. )Amounts on the payroll register should be agreed to the applicable general ledger accounts.

Question 3

Describe management’s role in the execution of transactions controls in the payroll transaction cycle.

Answer 3

1. )A responsible official should review and approve payroll
2. )An independent person should verify computations.
3. )Management should approve overtime payments.
4. )Payroll for management should be appropriately reviewed and approved.