HRM/Payroll Cycle Case Study

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1. Human resource management (HRM) and Payroll Cycle
The HRM/Payroll Cycle of the computer game company comprises the six major activities: recruiting of new staff, education and development, job assignment, paying, performance evaluation and discharge of employees because of finalization of the contract. The ERP system supports the HRM/Payroll Cycle in various ways whereby an integrated database is used. This database integrates all HR related master data, payroll-, time card-, job-time tickets- as well as general ledger data. An overview of the ERP system involvement in the cycles can be found in the Appendix (Romney & Steinbart, 2015).
In general, several threats related to the entire HRM/Payroll Cycle can be identified (Romney & Steinbart, 2015). These threats should be considered carefully, as they might negatively affect the employees which represent a critical success factor of the computer game company (Larsson, 2016). First of all, inaccurate or invalid master data can lead to various errors including under- or overstaffing or mistakes in paying the employees. Both events could decrease the job satisfaction. Additionally, sensitive information such as private and confidential data could be disclosed without authorization. Another general
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COSO is supported by the SEC and therefore provides a basic technique for assessing the internal control compliance with SOX. Moreover, it offers guidance in enhancing the internal control system respectively (Butler & Richardson, 2005). Besides the Internal Control framework, COSO has developed another technique, the Enterprise Risk Management (ERM) - Integrated Framework. This framework deepens the risk management handling by adding three additional elements to the COSO Internal Control Framework. Both COSO models are organized as a cube. The ERM framework is visualized in Figure
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