Bài giảng Romney_ais13 - Chapter 15: The Human Resources Management and Payroll Cycle

The Human Resources Management and Payroll CycleChapter 1515-1Learning ObjectivesDescribe the major business activities and related information processing operations performed in the human resources management (HRM)/payroll cycle.Discuss the key decisions to be made in the HRM/payroll cycle and identify the information needed to make those decisions.Identify the major threats in the HRM/payroll cycle and evaluate the adequacy of various internal control procedures for dealing with them.15-2Human Resource Management ProcessRecruit and hire new employeesTrainingJob assignmentCompensation (payroll)Performance evaluationDischarge of employees (voluntary or involuntary)15-3Payroll Cycle ActivitiesUpdate payroll master dataValidate time and attendance dataSource document: time sheetsPrepare payrollPayroll register and deduction registerDisburse payrollDisburse taxes and miscellaneous deductions15-41. Update Master Payroll Data2. Validate Time and Attendance Data3. Prepare PayrollThreatsControlsUnauthorized changes to payroll master dataInaccurate updating of master dataInaccurate time and attendance dataErrors in processing payroll1 a. Access controls and segregation of duties2 a. Data processing integrity controls3 a. Supervisory review b. Source data automation for data capture4 a. Data processing integrity controls b. Supervisory review15-54. Disburse Payroll5. Disburse Payroll Taxes ThreatsControlsTheft or fraudulent distribution of paychecksFailure to make required paymentsUntimely paymentsInaccurate payments1 a. Restrict access to blank payroll checks and check signing machine b. Use separate account (imprest fund)2 a. Configure system to make automatic payments on time3 a. Configure system to make automatic payments on time4 a. Process integrity controls b. Supervisory review15-6Reasons to Outsource PayrollReduce costsCost of processing and minimize errorsBroader range of benefitsAdministration of benefitsFree up computer resources15-7Key TermsHuman resource management (HRM)/payroll cycleKnowledge management systemsTime cardTime sheetPayroll registerDeduction registerEarnings statementPayroll clearing accountFlexible benefits planPayroll service bureauProfessional employer organization (PEO)15-8