Christian Colleges of Southeast Asia

AB Hi-Fi Human Resource and Payroll Analysis

In Partial Fulfillment of the Requirements of Auditing in Computer Science (ComSci 30)

Submitted by:

Merrie Joy N. Agao

Jessel M. Decena

Melvin Q. Generalao

Miko Jake Palis

Submitted to:

Ms. Rechell Kaye B. Mosqueda, CPA

August 25, 2018

 I. Case summary
AB Hi-Fi hires its own full-time and contracted or casual staff through managers
of each department, where applicants are intending to apply. The job advertisements for
casual staff are first posted in local newspapers and on websites. The managers
personally interview and pick the newly hired employee which is paid in an hourly rate
based on the qualifications and experience. Department managers advises the HR for
the starting pay rate and future adjustments.
Employees fill in pay claim through a timesheet based on the time they start and
finish each day which are accumulated each week and passed to the departmental
manager for authorization. Timesheets are then forwarded to HR department for
processing, the approval and adjustments by the appropriate manager is done before
the payroll of the employee is deposited by electronic fund transfer. When approved, the
bank deposit clerk deposits the payroll to employee’s bank account and general ledger is
advised of the amounts of the payroll disbursement.

II. Statement of the problem

What should the company do in order to avoid possible alterations and manipulations of
the employee’s timesheet records?

III. Areas of Considerations

i. Control of signing in and signing out of employees in the workplace

The ways of signing in and out of the employees in the workplace has an impact to the
efficiency and productivity of the company, because the production of the company depends to
its workers. If they do not work well, the company produces less, and that factor includes the
time consumed from the moment the employee enters to their workplace. If the of signing in and
out of the employees will not be monitored correctly, it may be subject to a fraud.

ii. Calculating payroll

The salaries and wages of employees depend upon the number of hours they have worked in
the company, the problem arise when there is an error in putting the number of hours of each
employee in the database for payment. The situation of employees in receiving their salaries, if
they have trouble or hustle free.

IV. Alternative Courses of Actions

i. Invest to a time tracking recording software

Time tracking recording software is an improved way of recording the hours worked by
an employee using computer.
a) The benefit of using time tracking recording software is no longer use of paper,
because it only requires certain body part in logging-in such as finger print, and
because it is automated, it consumes less time, which results for workers to
become more efficient and productive in their workplace. It also eliminates errors
in recording the time of employees because it connects to the payroll department
database that computes the salary of the employees correctly and also avoids
hustle situations during payment because it requires less data to make payment.

b) The disadvantage of using time tracking recording software is very costly. For
every update of the software it requires payment to the developer.

ii. Invest for a punch clock system

Punch clock is a recording clock used in business place to record hours worked by
employees. This is done by inserting a thick paper, also known as time card into the
space provided in the time clock. When the time card hits a contact at the end of the slot,
the machine would print day and time information on the card.

a) The benefit of using punch clock system is more durable because it requires only
time cards. It cannot be damaged in any electronic ways.
b) The disadvantage of using punch clock system is very time consuming, because
it needs a minute to insert the time card in the punch clock and print a result.
More paper is used in this set-up. Human errors may occur when entering the
data in the database when processing the payment. Though, this set-up is less
costly compared to the time tracking recording software.
V. Recommendations and Conclusions
The solution that we suggest is to invest in time tracking recording software like
biometric system. The company will benefit to this set-up because it does not use paper,
this means environment friendly, considering the welfare of the society, unlike with
having punch clocks, it uses many papers, because after the time cards are filled it will
be replaced by another one, and based on the case this company have many workers,
therefore many papers will be used.
Second advantage is, it eliminates human error. Having time tracking recording
software is convenient, the data that are gathered, from the time in and out of every
employee will be forwarded to the database of payroll department by means of wireless
fidelity. They will no longer in code the time of every employee which makes a tendency
of committing an error resulting to a discrepancy of employees’ salaries, which usually
happens in punch clock system.
Third advantage is, it increases the efficiency and productivity of every worker,
because they sign in easily, unlike with punch clock system that takes so much time in
signing in because the employee waits for his/her turn. Lastly, time tracking recording
software is costlier than punch clock system but, the benefits that may be received will
guarantee payroll department to work efficiently and effectively.

VI. Learnings and Take-aways

As we examined and assessed the Human Resource and Payroll Cycle of AB
Hi-Fi, we identified the factors which affect the salaries of the employees. As a group, we
learned that a company must invest in a time tracker which at most eliminates human
error to have a great impact to the company. We also learned that the time in and out of
employees, if not given appropriate monitoring may affect the productivity, efficiency,
and effectivity of the company.
On the other hand, we observed that no matter how hard or easy the case that is
to be solved, there should always be a team work. It should always exist in every group
to attain the best solution and result of the case.