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Systems and controls

10.2 Payroll system control objectives

Stage Objective: To ensure...

Clock cards /  Employees are only paid for work actually done.
timesheets

Payroll  Only genuine employees are paid.
calculation
 Employees are paid at the correct rates of pay.

 Gross pay is calculated and recorded accurately.

 Net pay is calculated and recorded accurately.

Standing data  Standing data is kept up to date.
amendments
 Access to standing data is restricted to prevent fraud or
error occurring.

Recording  All payroll amounts are recorded.

 Payroll amounts are recorded accurately.

 Payroll costs are recorded in the period to which they
relate.

Payments to  Correct amounts are paid to the employees and taxation
employees and authorities.
tax authorities
 Payments are made on time.

 Payments are only made to valid employees.

Illustrations and further practice

Now try TYU 3 in Chapter 7

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