PAYROLL APPLICATION CONTROL Personnel Рropares Original Payroll information Роst Payrof Information Authorization Form Authorization Form Calculate Overtime and Shift Differential Rates Payrol Master File Employee Punches Time Clock Employees Time Cards Database Backup Review Time Cards for Accuracy Prepare Employee Payroll No Review Weekly Payroll Register on Monitor Does Payrol Register Match Time Cards? Ves Process Payroll Checks Payroll Register Paychecks Prepare Journal Entry Distribute to Еmployees General Ledger

Pkg Acc Infor Systems MS VISIO CD
10th Edition
ISBN:9781133935940
Author:Ulric J. Gelinas
Publisher:Ulric J. Gelinas
Chapter14: The Human Resources (hr) Management And Payroll Processes
Section: Chapter Questions
Problem 5DQ
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Using this supplemental information, analyze the flowchart in the diagram.

  • The personnel department determines the wage rate of all employees. To start the process, personnel sends the payroll coordinator, George Jones, an authorization form in order to add an employee to the payroll. After Jones enters this information into the system, the computer automatically determines the overtime and shift differential rates for the individual, updating the payroll master files.
  • Employees use a time clock to record the hours worked. Every Monday morning, George Jones collects the previous week’s time cards and begins the computerized processing of payroll information to produce paychecks the following Friday. Jones then reviews the time cards to ensure that the hours worked are correctly totaled; the system determines overtime and/or any shift differential.
  • Jones performs all other processes displayed on the flowchart. The system automatically assigns a sequential number to each payroll check produced.
    The check stocks are stored in a box next to the computer printer to provide immediate access.
  • After the checks are printed, an automatic check-signing machine signs them with an authorized signature plate that Jones keeps locked in a safe. After the check processing is completed, Jones distributes the checks to the employees, leaving the checks for the second- and third-shift employees with the appropriate shift supervisor. Jones then notifies the data processing department that he is finished with his weekly processing, and data processing makes a backup of the payroll master for storage in the computer room.
    Required
    Identify and describe:
    a. Areas in the payroll processing system where the internal controls are inadequate.
    b. Two areas in the payroll system where the system controls are satisfactory.
PAYROLL APPLICATION CONTROL
Personnel
Рropares
Original
Payroll information
Роst Payrof
Information
Authorization
Form
Authorization
Form
Calculate Overtime
and Shift
Differential Rates
Payrol
Master File
Employee
Punches
Time
Clock
Employees
Time Cards
Database
Backup
Review
Time Cards
for
Accuracy
Prepare Employee
Payroll
No
Review Weekly
Payroll Register
on Monitor
Does Payrol
Register Match
Time Cards?
Ves
Process Payroll
Checks
Payroll
Register
Paychecks
Prepare Journal
Entry
Distribute
to
Еmployees
General
Ledger
Transcribed Image Text:PAYROLL APPLICATION CONTROL Personnel Рropares Original Payroll information Роst Payrof Information Authorization Form Authorization Form Calculate Overtime and Shift Differential Rates Payrol Master File Employee Punches Time Clock Employees Time Cards Database Backup Review Time Cards for Accuracy Prepare Employee Payroll No Review Weekly Payroll Register on Monitor Does Payrol Register Match Time Cards? Ves Process Payroll Checks Payroll Register Paychecks Prepare Journal Entry Distribute to Еmployees General Ledger
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