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Physical Controls

 Payroll System Controls

Verification of timecards
- timecard is the formal record of daily attendance
- before sending timecards to payroll, the supervisor must verify their accuracy and sign

- supervisors observe the clocking process and reconcile the timecards with actual

- helps verify the existence of the employees
- useful in uncovering fraud

Payroll imprest account
- used only for payroll clearing

 Testing physical controls

Details of transaction processing produced at intermediate points can provide an audit trail that reflects the activity through every stage of operation. . misdircted. or corrupted and that system processes function as intended.  Designed to identify operational and internal control problems  Important element is the maintenance of an audit trail.Output Controls  Designed to ensure that information is not lost.

a listing of all error records should go to the appropriate user to support error correction and resubmission .A summary report that shoes the overall change to accounts payable  Transaction logs .every transaction successfully processes by the system are recorded here that serves as a journal  Transaction Listing .Audit Trail Output Controls  Accounts payable change report .a hard copy of all successful transactions  Log of automatic Transactions .all internally generated transactions must be placed in a transaction log  Unique transaction identifiers .each transaction processed by the system must be uniquely identified with a transaction number  Error listing .

and relevance to the decision that they are intended to support.  Auditor should also trace sample transactions through audit trail reports. and logs of resubmitted records. timeliness. transaction listings. .Testing Output Controls Testing output controls involves reviewing summary reports for accuracy. completeness. error logs.