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Accounting information system an overview 9e bodnar and hopwood 2015 chapter 15

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The Human Resources Management and Payroll Cycle Chapter 15... Copyright © 2015 Pearson Education, Inc.Learning Objectives • Describe the major business activities and related informati

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The Human Resources

Management and Payroll Cycle

Chapter 15

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Copyright © 2015 Pearson Education, Inc.

Learning Objectives

• Describe 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.

15-2

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Human Resource Management Process

involuntary)

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Copyright © 2015 Pearson Education, Inc.

Payroll Cycle Activities

▫ Source document: time sheets

▫ Payroll register and deduction register

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1 Update Master Payroll Data

2 Validate Time and Attendance Data

3 Prepare Payroll

1 Unauthorized changes to

payroll master data

2 Inaccurate updating of

master data

3 Inaccurate time and

attendance data

4 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

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Copyright © 2015 Pearson Education, Inc.

4 Disburse Payroll

5 Disburse Payroll Taxes

1 Theft or fraudulent

distribution of paychecks

2 Failure to make required

payments

3 Untimely payments

4 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

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Reasons to Outsource Payroll

▫ Cost of processing and minimize errors

▫ Administration of benefits

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Copyright © 2015 Pearson Education, Inc.

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)

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