Describe four (4) test of control that can be performed in the payroll cycle and state the purpose

of each control being tasted. The answer:

1) At the end of each pay period, the employee from the various department supervisors

must be sent the timecard on the payroll clerk. The purpose for this control being test for check the numerical sequence of the timecard on all employees. They must be responsible and collaborate about this.
2) When the payroll clerk received timecard from them, the payroll clerk will be approving

the timecard to the personnel department. This department will be processing the timecard for record the regular, overtime hour and employees hourly rate. The personnel department will calculate employees hour for determine the company can give bonuses or consolation to employees.
3) Personnel department will approve the copies to payroll clerk. The payroll clerk will

approve the copy to data processing department. The data processing departments will compilation and processing the document in order that the data processing department can do correct payroll transaction.
4) The data processing department will approve the timecard with the printed cheques and

payroll register to the payroll clerk. The payroll clerk verifies the hourly rate and hour work for each employee. If the payroll clerk found the error at the document, the payroll clerk can cancelled the computer generated cheque and prepare another cheques.

Identify five (5) weaknesses in the above payroll cycle and briefly describe the possible effect that could result from of the weaknesses.
1) Half employee from various department supervisors do not collaborate or forget to

sent the timecard on payroll clerk. So, payroll clerk cannot do the payroll transaction and process the data about hour work employees. If the various department supervisors sent the timecard but still have problem, some the file no record in the compute. So, payroll clerk necessary review the all document before approve the other department. 2) The payroll clerk approve the timecard on the personnel department at time is invariable. The personnel department wrong records the hour work employees. So, the personnel department must be responsible about this because half the employee have taken overtime. So, the employee cannot do claim for overtime. The personnel department must be careful time to record the hours employee work. The personnel department must check the payroll before approve to payroll clerk.
3) Employee compensation and payroll deduction computed incorrect because the

data processing department received wrong information. So, the data processing department will process the payroll transaction incorrect. So the data processing department makes sure the other departments not give the wrong information about the timecard. 4) The payroll register to the timecard not post correctly in the data compute. So, the payroll clerk cannot verify the hourly rate and hours worked for each employee. The employee maybe cannot pick up the cheque from the payroll clerk. Payroll clerk must refer the all department for correct the all data in computer. Payroll clerk have power for find the error in the document before the document sign by the accounting department.
5) If the error in the document, the payroll clerk must be cancelled the computer-

generated cheque and the payroll clerk must prepare another cheque for the correct amount and adjust the payroll register accordingly. After correct the all document, the payroll clerk obtain the plant signature plate from the accounting department and sign the payroll cheques.