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Following is a list of five control plans from this chapter (or from earlier chapters and tailored to the HR management and payroll processes of this chapter). Listed next are four process failures that have control implications. Write the numbers 1 through 4 on your solution sheet. Next to each number, insert one letter from the preceding list indicating the control plan that would best prevent the process failure from occurring. Also, give a brief, one- to two-sentence explanation of your choice. A letter should be used only once, with one letter left over. Control Plans A. Hash totals of employee ID numbers B. Electronic time management system C. Specific approval of HR/payroll changes D. Imprest payroll bank account E. One-for-one checking of hours per attendance time data and hours shown on pay stubs Process Failures 1. An employee in the HR department prepared a bogus change-of-pay form to increase his salary by $25 per week. The form was submitted for processing and was entered into the system without being challenged. 2. Attendance time data are often not entered, not entered in a timely manner, or not accurate. 3. Each weekly pay period, a check is drawn on the general cash account and deposited to the payroll bank account in an amount “estimated” to be sufficient to cover the actual total of payroll checks issued that week. As a result, the payroll account runs a balance of several thousand dollars (non-interest-bearing), a situation that the newly hired treasurer has questioned. 4. In entering attendance time data, the data entry clerk misread all 7s as 9s. Although some time data were rejected, other data were processed against wrong employees, who happened to have a 9 instead of a 7 in the comparable position in their employee ID number.

BuyFind

Accounting Information Systems

11th Edition
Ulric J. Gelinas + 3 others
Publisher: Cengage Learning
ISBN: 9781337552127
BuyFind

Accounting Information Systems

11th Edition
Ulric J. Gelinas + 3 others
Publisher: Cengage Learning
ISBN: 9781337552127

Solutions

Chapter
Section
Chapter 14, Problem 4SP
Textbook Problem

Following is a list of five control plans from this chapter (or from earlier chapters and tailored to the HR management and payroll processes of this chapter). Listed next are four process failures that have control implications. Write the numbers 1 through 4 on your solution sheet. Next to each number, insert one letter from the preceding list indicating the control plan that would best prevent the process failure from occurring. Also, give a brief, one- to two-sentence explanation of your choice. A letter should be used only once, with one letter left over.

Control Plans

  1. A. Hash totals of employee ID numbers
  2. B. Electronic time management system
  3. C. Specific approval of HR/payroll changes
  4. D. Imprest payroll bank account
  5. E. One-for-one checking of hours per attendance time data and hours shown on pay stubs

Process Failures

  1. 1. An employee in the HR department prepared a bogus change-of-pay form to increase his salary by $25 per week. The form was submitted for processing and was entered into the system without being challenged.
  2. 2. Attendance time data are often not entered, not entered in a timely manner, or not accurate.
  3. 3. Each weekly pay period, a check is drawn on the general cash account and deposited to the payroll bank account in an amount “estimated” to be sufficient to cover the actual total of payroll checks issued that week. As a result, the payroll account runs a balance of several thousand dollars (non-interest-bearing), a situation that the newly hired treasurer has questioned.
  4. 4. In entering attendance time data, the data entry clerk misread all 7s as 9s. Although some time data were rejected, other data were processed against wrong employees, who happened to have a 9 instead of a 7 in the comparable position in their employee ID number.

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Accounting Information Systems
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