Chapter 8: Employee Costs Flashcards
1
Q
What are the stages of employee systems?
A
- Calculate wages and salaries
- record wages and salaries
- Pay wages and salaries
2
Q
What is calculate wages and salaries’ function
A
A function of standing data and variable data
3
Q
What is standing data in salaries and wages?
A
Info in ECM not vary regularly e.g hour rates, salary
4
Q
What is the variable data in salaries and wages?
A
Hours worked or overtime e.g. timesheets and clock cards
5
Q
What is the calculation formula for wages and salaries?
A
monthly salary + (overtime hrs worked x hrs rat)
6
Q
What are the risk and procedures of calculating wages and salaries in ECM?
A
- employee paid incorrect i.e goodwill loss of staff: check to personal records
- employee paid after leaving company: checks on standing data; record hrs; check pay to budget
7
Q
What are the risk and procedures of recording wages and salaries in ECM?
A
- gross and net pay incorrect: reviewed and authorised by manager ; reconcile to last month
- Deductions wrong so penalty from HMRC: compare to last month;
8
Q
What are the risk and procedures of pay wages and salaries in ECM?
A
- wrong person paid: segregation of duties, personnel records, prep of payroll
- pay to employee incorrect: for cash physical control; bank transfer compare to docs and calcs.
9
Q
What is the test controls of the employee costs?
A
- auditor: if internal control fine then test control to get evidence, if IC is effective
