Accounting Essay 2 pages must answer all questions
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romney_ais14_stppt_15.pptxAccounting Information Systems
Fourteenth Edition
Chapter 15
The Human Resources Management and Payroll Cycle
Copyright © 2018 Pearson Education, Inc. All Rights Reserved
Copyright © 2018 Pearson Education, Inc.
Chapter 15: The Human Resources Management and Payroll Cycle
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Learning Objectives
Describe the major business activities, key decisions, and information needs in the HRM/payroll cycle, the general threats to those activities, and the controls that can mitigate those threats.
Explain the payroll cycle activities, key decisions, and information needs, the threats to those activities, and the controls that can mitigate those threats.
Discuss and evaluate the options for outsourcing HRM/payroll cycle activities.
Copyright © 2018 Pearson Education, Inc.
Chapter 15: The Human Resources Management and Payroll Cycle
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Human Resource Management Process
Recruit and hire new employees
Training
Job assignment
Compensation (payroll)
Performance evaluation
Discharge of employees (voluntary or involuntary)
Copyright © 2018 Pearson Education, Inc.
Chapter 15: The Human Resources Management and Payroll Cycle
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General Issues HRM/Payroll
Threats
Controls
Inaccurate or invalid data
Unauthorized disclosure of sensitive information
Loss or destruction of data
Hiring unqualified or larcenous employees
Violations of employment laws
1 a. Data processing integrity controls
b. Restrict access to master data
c. Review changes to master data
2 a. Access controls
b. Encryption
3 a. Backup and Disaster recovery
4 a. Sound hiring procedures
5 a. Documentation of hiring
b. Continuing education on changes to employment laws
Copyright © 2018 Pearson Education, Inc.
Chapter 15: The Human Resources Management and Payroll Cycle
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Payroll Cycle Activities
Update payroll master data
Validate time and attendance data
Source document: time sheets
Prepare payroll
Payroll register and deduction register
Disburse payroll
Disburse taxes and miscellaneous deductions
Copyright © 2018 Pearson Education, Inc.
Chapter 15: The Human Resources Management and Payroll Cycle
Slide 1 - ‹#›
1. Update Master Payroll Data 2. Validate Time and Attendance Data 3. Prepare Payroll
Threats
Controls
Unauthorized changes to payroll master data
Inaccurate updating of master data
Inaccurate time and attendance data
Errors in processing payroll
1 a. Access controls and segregation of duties
2 a. Data processing integrity controls
3 a. Supervisory review
b. Source data automation for data capture
4 a. Data processing integrity
controls
b. Supervisory review
Copyright © 2018 Pearson Education, Inc.
Chapter 15: The Human Resources Management and Payroll Cycle
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4. Disburse Payroll 5. Disburse Payroll Taxes
Threats
Controls
Theft or fraudulent distribution of paychecks
Failure to make required payments
Untimely payments
Inaccurate payments
1 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 time
3 a. Configure system to make automatic payments on time
4 a. Process integrity controls
b. Supervisory review
Copyright © 2018 Pearson Education, Inc.
Chapter 15: The Human Resources Management and Payroll Cycle
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Reasons to Outsource Payroll
Reduce costs
Cost of processing and minimize errors
Broader range of benefits
Administration of benefits
Free up computer resources
Copyright © 2018 Pearson Education, Inc.
Chapter 15: The Human Resources Management and Payroll Cycle
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Key Terms
Human resource management (HRM)/payroll cycle
Knowledge management systems
Time card
Time sheet
Payroll register
Deduction register
Earnings statement
Payroll clearing account
Flexible benefits plan
Payroll service bureau
Professional employer organization (PEO)
Copyright © 2018 Pearson Education, Inc.
Chapter 15: The Human Resources Management and Payroll Cycle
Slide 1 - ‹#›
Copyright © 2018 Pearson Education, Inc.
Chapter 15: The Human Resources Management and Payroll Cycle
Slide 1 - ‹#›
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