salaries and wages

Question 1

Perfect cycle

Answer 1

1. Appointment and authorisation:
2. Personnel records
3. Timekeeping and checking hours worked
4. Calculation and preparation of payroll
5. Payments
6. Account
7. Additional’s

Question 2

Risk

Answer 2

Appointments & authorisation
- Unauthorised appointments/dismissals

Personnel records:
- Unauthorised deductions /fringe benefits
- Unauthorised &wrong changes to salaries/ wages

Calculation & preparation of payroll:
- Employees dismissed remain on payroll
- Employees paid for services not rendered
- Employees paid at unauthorised scale/ tariff
- Deductions paid over incorrectly
- Employee not paid for services rendered
- Pay incorrect employee
- Inaccurate calculations wrong wage scale or basic salary or hours or deductions
- Ineffective control over unclaimed wages

Recording:
- Fictitious employees on salary &wage journals
- Incorrect recording of information
- Not all salary/wage transactions are recorded