Chapter 15. The Human Resources Management and Payroll Cycle

Question 1

What does Human Resource Management Process consist of

Tip: recruit, traning, compensation, performance evaluation etc.

Answer 1

Recruit and hire new employees
Training
Job assignment
Compensation (payroll)
Performance evaluation
Discharge of employees (voluntary or involuntary)

Question 2

We can summarize that an organization are people, processes and systems but what is most important from a HR perspective?

Answer 2

It’s easy to change processes and to acquire and configure systems. But acquiring and managing people is the most difficult.

There is much competition for skilled and talented employees, the ability to recruit, train, and retain employees is essential for the success of an organization.

Question 3

General threats and control throughout entire HRM/payroll cycle

Tip: same as the other three cycles, the revenue, expenditure and production cycle.

Answer 3

Threats: inaccurate or invalid master data, unauthorized disclosure of sensitive information and loss or destruction of data.

Control: 
1.1 Data processing integrity
controls.
1.2 Restriction of access to
master data.
1.3 Review of all changes to
master data.
2.1 Access controls.
2.2 Encryption.
3.1 Backup and disaster recovery procedures.