Required:

1. Prepare an internal control narrative for ABC’s payroll system.

In this internal control flow chart shows the procedure how the payroll operate in the
organization or company the first thing id by checking the hourly employee clock in and
out because in this we the company will monitor what hour or those employee my be in
or out in the work because those hours have a rate and thats the company pay on you
additional is the overtime those company is base on hour of your work done in a day the
second is monitoring of vacation leave and sick leave because company give those
benefits tho thier employee which means when you take a sick leave and vacation leave
and another is maternity leave which given to preganant worker you have a pay on that
day but when you didn't use that benefit it will appear in your bonus your unused
benefits. When those things check and record of payroll clerck those form of sick leave
and time card it proceed to the payroll software perform control check to save those data
and being secured next one is the Payroll software produces checks or direct deposits in
this system will transfer this software will calculate the exact amount of what employee
should recieve in thier salary this will help to lessen the risk of calculating and to prevent
unethical doings. next one is to payroll register which is the record of the payroll recived
by the employee next is the payroll check is the form of check that given by employee it
value the amount of salary of the employee to be recieved.

2. Identify any internal control weaknesses related with ABC’s payroll system?

There are 2 weaknesses i see in internal control of ABC's payroll system the first
one is the time card i don't know it is the anusual time card who have a piece of card to
sign by the employee and right the time he in and out because on this trafitional system
many times those employee may be not fair a lot happens thier enter late but thier write
the exact time in of the employee i suggest make it modern like the basis is the finger
print or more security that monitor to the gate or in the place will employee time in and
out. The next one is how the payroll data procedure operate maybe it can be more secured
by adding an IT expert to create 1 software that check those data or more clerk who will
operate tho filter those data to minimize the risk and unethical issues.

MILITANTE, CHRISTIAN JUSTIN

BSA-3.A
PROF. DANGUE