WEAKNESS EXAMPLES - PAYROLL

Question 1

Can HO check all the stuff at branches?

Eg. In osborne Timesheets signed off at branch and then entered on a central system by a branch clerk.
… this was a weakness because even though timesheets were being signed off … HO couldn’t CHECK this !!! Maybe need to think about whoever is overall in charge should have access in case they wanted to double-check before signing off payment… seems a bit stretched but if answer only needs to be plausible…

Answer 1

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Question 2

Payroll clerk has full user rights to Payroll software

Answer 2

Can change rates of pay, rates of pension contribs, add employees - fraud risk

Question 3

Branch managers can add temp staff

Answer 3

Risk fictitious employees

Risk breaching employment regs if checks not carried out.

Question 4

FA has only partial training on payroll software

Answer 4

Holiday / sickness cover.

Employee financial probs if not paid timely

Question 5

FA checks are limited.

• Starters and leavers
• Deductions
• Pension contributions

Answer 5

Payroll clerk errors or fraud could go undetected

Question 6

FA authorises the BACS payment

Answer 6

Potential fraud by the FA