Rosie Hendricks and Jay Alexander control all changes to payroll at Sheridan AV, including new hires, terminations, pay changes, and tax changes. Rosie authorizes the monthly payroll run prepared by Jay. James Clark authorizes bank transfers of payroll payments. Controls include restricted access to the password-protected payroll system, separation of duties between payroll preparation and authorization, and error-checking of time sheets. However, the company lacks automated timekeeping and payroll calculation verification.
Rosie Hendricks and Jay Alexander control all changes to payroll at Sheridan AV, including new hires, terminations, pay changes, and tax changes. Rosie authorizes the monthly payroll run prepared by Jay. James Clark authorizes bank transfers of payroll payments. Controls include restricted access to the password-protected payroll system, separation of duties between payroll preparation and authorization, and error-checking of time sheets. However, the company lacks automated timekeeping and payroll calculation verification.
Rosie Hendricks and Jay Alexander control all changes to payroll at Sheridan AV, including new hires, terminations, pay changes, and tax changes. Rosie authorizes the monthly payroll run prepared by Jay. James Clark authorizes bank transfers of payroll payments. Controls include restricted access to the password-protected payroll system, separation of duties between payroll preparation and authorization, and error-checking of time sheets. However, the company lacks automated timekeeping and payroll calculation verification.
Rosie Hendricks and Jay Alexander control all changes to payroll at Sheridan AV, including new hires, terminations, pay changes, and tax changes. Rosie authorizes the monthly payroll run prepared by Jay. James Clark authorizes bank transfers of payroll payments. Controls include restricted access to the password-protected payroll system, separation of duties between payroll preparation and authorization, and error-checking of time sheets. However, the company lacks automated timekeeping and payroll calculation verification.
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Payroll Controls
Expected payroll controls Are these in existence at Sheridan?
All changes to the payroll is authorised by Rosie All changes to the payroll are authorised: Hendricks an Accounts & admin Manager and jay Alexander a payroll administrator Starters Leavers They Make sure that all new employee Rate of pay changes details are passed to Jay for set up on Rate of tax changes payroll system They Make sure to remove an employee who leaves or retire from the payroll system Rosie Make sure that the tax coding notices from HMRC are input correctly Rosie Authorise changes made to the payroll while jay put any raises of bonuses in the payroll system Rosie Authorise and check the monthly payroll run while jay do the process Change tracking Every year the salary rates are discussed and if any rate rises are agreed , it should be recorded Copies are kept of changes to the payroll – such in minutes. The Copy of minutes is given to the as rate changes accounts and admin manager which is Rosie Hendricks. And ask Jay to amend the rate of pay in payroll system. No it doesn’t show items that fall outside of a Error-checking reports normal payroll as each person weekly complete a timesheet showing the hours worked each Show items that fall outside of normal payroll day. And having it signed by the line manager to show that it’s accurate. The payroll system is kept on a networked drive Access restricted to payroll records on Sheridan AV’s computer system. This system is password protected . Only Rosie, jay and Appropriate measures taken to protect payroll James have access to it data and personal details with restricted access James as the finance director insisted that to online and paper based records including password must be strong and randomly payslips. generated , using a minimum of 12 characters And the system requires them to change their randomly generated passwords every three months. Since the payroll is confidential jay runs the payroll on James office to do the administration Jay Alexander the payroll Administrator do the Separation of duties process of preparing the payroll . Rosie Hendricks an Account and admin manager One person prepares payroll and authorised the changes in the payroll. another authorises it James Clark as the finance Director is the one Another person makes payments who makes the payments They don’t have Automated timekeeping Automated timekeeping systems systems. Since they only have basic time sheet and is only pre- printed. The employee was just Computerised time clock of calculating weekly asked to fill in the details by hand. pay and overtime
The employee are the ones who calculated the
Calculation verification total hours and minutes for the day an wrote this into the form manually. For any manual calculations to the payroll
All other staff are paid monthly and the
Hours worked/overtime authorised for weekly Sheridan does not pay overtime for staff unless pay these are exceptional circumstances.
Bank transfers to employees are authorised by After Rosie and James authorise the monthly two senior members of staff payroll . It is passed to Mark Avon to prepare the bank transfer listing Payroll checking account – this should be a There’s no separate account separate account to minimise risk of fraud
