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Task 5 payrollcontrol audit programme_v2
- 1. Payroll Controls Expectedpayroll controls Are these in existence atSheridan? All changestothe payroll are authorised: Starters Leavers Rate of pay changes Rate of tax changes There isan existence of authorisedchangeswith the startersand leavers.The payroll administrator,whose dutyistoinputnew employeesandremove anemployeewholeaves or retiresfromthe payroll system, entered the starter,intothe payroll systemandremove the leaver,untothe system. Whenrate of pay or tax changesitwas recorded inthe minutes.The minutesindicatethatthe pay raise hasbeenauthorisedbythe board. Change tracking Copiesare keptof changesto the payroll – such as rate changes Copiesof the minutesof rate changesto the payroll were giventothe Accountmanagerto be kept. Error-checkingreports Showitemsthatfall outside of normal payroll The account managerhas run and reviewedthe reportsbefore she signitas authorised. Accessrestrictedtopayroll records Appropriate measurestakentoprotectpayroll data and personal detailswithrestrictedaccess to online andpaperbasedrecordsincluding payslips. The payroll recordsand employeefilesare lock up to preventunauthorizedaccess. The use of strongpasswordinprotectionof the records storedonline inimportanttoprevent unauthorizedchangestorecordssuchas a pay rate. Separationof duties One personpreparespayroll and anotherauthorisesit Anotherpersonmakespayments The account managerauthoriseschangesmade to the payroll andcheck the monthlypayroll run. The payroll administratorprocessesthe weekly pay run forstaff in productionandwarehouse, and the monthlypayroll runforall otherstaff. The finance directorauthorisesthe payment. Automatedtimekeepingsystems Computerisedtime clockof calculatingweekly pay andovertime In recordingthe employee’stime of workina day,pre-printedformof timesheetswere providedindicatingthe name,date andtime he startedand finishedwork whichthe employee will justfill inthe detailsbywritingitdown. At the endof the week,the employeehimself will calculate the total hoursandminutes workedforthe weekandwrite itstotal on the
- 2. givenformusingmanual calculations. Calculationverification For any manual calculationstothe payroll The line managerhasverified the manual calculationof total hoursof workedof his subordinate,signedthe documenttoauthorise it as accurate and sentitto the payroll administratorforprocessing. Hours worked/overtime authorisedforweekly pay Overtime paymentisagreedwiththe finance directorwhoauthorisesthe payment. Bank transferstoemployeesare authorisedby twoseniormembersof staff The payrollsforbank transfers toemployees were authorisedbythe accountmanagerand finance director. Payroll checkingaccount – thisshouldbe a separate accountto minimise riskof fraud Doingso preventssomeonefromfraudulently increasingthe amountonan existingpaycheck or creatingan entirelynew one,since the funds inthe accountwill notbe sufficienttopayfor the alteredcheck.