Question

List three internal control issues regarding the HR and Payroll department.

Answer 1

Internal control procedures, the practices and guidelines a business follows to protect its resources, are especially important when recording, preparing and distributing the payroll

3 internal control issues regarding hr and payroll department are following.

1. Payroll calculation controls

If someone is calculating payroll manually, then second person Must verify all the calculations. Including the hours worked , pay rate used and tax deduction made.

A person preparing payroll must not approve the timesheets of the employee.

2. Payment controls

Payment to employees must be made from a separate bank account so to trace it for further requirements.

It is easy to verify the payment made if made from one separate account.

3. Recording time work

Time sheets must be signed by the employee;

Then reviewed, approved and signed by a supervisor when applicable. T

off or unpaid absences should be reflected on the appropriate time sheet