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The Payroll and the Human Resource (HR) function - Coggle Diagram
The Payroll and the Human Resource (HR) function
The human resources (HR) function
Documentation
Employee’s file;
Payroll amendment forms;
Updated list of employee details.
The timekeeping function
Documentation
Blank clock cards;
Hours recorded on clock;
Batch control sheet and batch register.
Controls
Clock cards should
Entry and exit points to the work area should:
Clock procedure
The foreman should
Overtime should
The payroll preparation function
The payment preparation and pay-out function
Documentation
Authorised payroll;
Payroll;
Payslips;
Pay-packets;
Unclaimed wages register.
Controls
The wage cheque should be signed by two signatories
The wages cheque should be cashed at the bank:
The make-up of wage packets should:
The pay-out:
Unclaimed wages
The deductions: payments and recording function.
Documentation
General ledger;
Payroll (wage journal);
Cash payments journal;
Return form.
Controls
Appointing risk compliance officers.
Risk management policies.
CONTROLS
Validity and Authorisation:
All recorded wages are valid and supported by proper documentation.
Completeness:
All valid payroll transactions are recorded and nothing is left out.
Accuracy:
Payroll transaction are shown at the correct amounts.
Recording:
All purchase transactions are correctly recorded.
Cut off:
All payroll transactions are recorded in the correct reporting period.
Substantive procedures
Validity/Occurrence:
Completeness: