Week 6 - Payroll System

Question 1

What is the first control objective for a basic payroll system?

Answer 1

Wages and salaries are paid only to actual employees at authorised rates of pay

Question 2

What is the second control objective for a basic payroll system?

Answer 2

Wages and salaries are computed in accordance with records of work performed whether in respect of time, output, sales, etc

Question 3

What is the third control objective for a basic payroll system?

Answer 3

Payrolls are correctly calculated

Question 4

What is the fourth control objective for a basic payroll system?

Answer 4

Payments are only made to the correct employee

Question 5

What is the fifth control objective for a basic payroll system?

Answer 5

Payroll deductions are correctly accounted for and paid over to the appropriate third parties

Question 6

What is the sixth control objective for a basic payroll system?

Answer 6

All transactions are correctly recorded in the book of accounts