Create an accounting flowchart from the following dialogue:

Cathy Apple, from internal audit, interviews Irene Patricia “I.P.” Nightly – Payroll Supervisor

CA: Mrs. Nightly, I’m Cathy Apple from the internal audit department. Thanks for meeting with me.

IP: Cathy, please call me “I. P.” What can I do for you?

CA: I need to document the payroll process. I know we produce checks weekly but I am a little unclear on the details.

IP: I think I can help you. First-time data are recorded in each department online into the payroll time cards transaction file for office staff and using clocks with badge readers in the warehouse. It is annoying at night when people forget to clock out and we have to record time by hand. We end our payroll week on Sunday and on Monday each department supervisor must review the time card data and approve it by noon. Betsy, the payroll clerk, then prints off a detailed time report and reviews all the payroll transaction data submitted to be sure it is complete. She tracks down missing data and enters any corrections. She also gets the file of employee information update transactions from the Human Resources department. Things like: change of address, deductions, new pay rate, etc.

CA: Is the file from human resources on paper?

IP: No it is on the computer in Excel.

First, Betsy applies the human resources transactions to update the employee master file by running the master file update process in the payroll system. Then she runs the payroll calculation process using the payroll time cards transaction file and the updated employee master file to generate employees’ paychecks. Actually we generate pay stubs to give to the employees; we pay via direct deposit. The money is transferred from our payroll account into the employees’ checking account based upon the payroll deposit file generated during the payroll calculation process. We send this file to the bank. Several reports are produced for management. In addition, federal and state withholding reports are produced for tax purposes.

I think that wraps it up. Any questions?

CA: I think I have got it. We have three files, the payroll time cards transaction file, the human resources transactions file, and the employee master file.

IP: That is correct. Plus the payroll deposit file we send to the bank. Cathy, what is your favorite sports team?

CA: The Minnesota Vikings. How about you I.P.?

IP: Bulldogs Hockey I love going to the games and cheering them on …

CA: Sounds like fun.