ii- Payroll-Related Accrual Accounts
3. Describe the duties that are performed within the personnel, timekeeping, and payroll processing functions. 4.a. Describe what are the key authorisation points in a payroll system. b.Explain the importance of establishing control procedures over the classification of payroll transactions.
Personnel| Authorization of hiring, firing, wage-rate and salary adjustments, salaries, and payroll deductions.| Supervision| Review and approval of employees' attendance and time information; monitoring of employee scheduling, productivity, and payroll cost variances.| Timekeeping| Processing of employees' attendance and time information and coding of account distribution.| Payroll processing| Computation of gross pay, deductions, and net pay; recording and summarization of payments and verification of account distribution.|
2.Payroll Expense Accounts:|
Compare current year with prior year payroll expense accounts| | Compare current and prior year payroll costs as percent of sales and industry data| | Compare labor utilization rates and statistics with industry data| | Compare budgeted payroll expenses with actual payroll expenses| | Estimate sales commissions with formula and recorded sales| | Payroll-Related Accrual Accounts:|
Compare current and prior years' balances in payroll related accounts| | Test reasonableness of accrual balance| |
3.The following duties are performed in the personnel, timekeeping, and payroll-processing functions: Personnel: Authorisation of hiring, firing, salaries/wage rates, salary adjustments, and payroll deductions. Timekeeping: Processing of employees' attendance and time...