List TWO objective of a payroll system and identify a relevant assertion for the objective As the external auditor of Treadway Ltd, write to management in respect of the payroll system which i Identifies THREE deficiencies in respect of the above payroll system;

 Explains the possible implication of each of these and Suggests a recommendation 10 address each deficiency:

 

Transcribed Image Text:

Treadway Ltd manufactures personal protective clothing for the Jamaican regional health authorities. The company operates on one shift per day with a standard 40-hour work week. The production staff clock-in using electronic swipe cards. On arrival at work each morning each staff scans his or her swipe card on the time recording system which captures each staff's unique ID number. Once this process is complete the staff is deemed to be at work, and are paid from the time they are clocked in Staff clock out at the end of each shift by re-scanning their electronic swipe card. With all staff trained on the company's code of ethics, the clocking in and out system is not monitored While the production staff work a standard 8-hour day, where necessary, overtime is worked to complete orders. The shift supervisor is not required to monitor the extent of overtime worked; however, the supervisor does ensure staff do not take long breaks which would increase the amount of overtime hours captured The details of hours worked each week is sent electronically to the payroll department, where the hours worked are allocated to each staff's record by the electronic payroll system. Clerks in the payroll department compare hours from the time recording system to the electronic payroll system and enters a password to confirm both systems agree. The password also authorizes the calculation of the net pay. To ensure there is no delay in processing the payroll the password is generally known in the department.. On a weekly basis the electronic payroll system calculates the gross pay, statutory deductions and net pay for each production staff The list of net pay for each staff is sent electronically to the accounts department. An accounts clerk checks the bank details for each staff, then authorizes and makes payments to staff using the company's online banking system. The finance director reviews the total amount per the payroll records on a periodic basis to ensure the amount is correctly reflected in the management accounts Treadway Ltd manufactures personal protective clothing for the Jamaican regional health authorities. The company operates on one shift per day with a standard 40-hour work week. The production staff clock-in using electronic swipe cards. On arrival at work each morning each staff scans his or her swipe card on the time recording system which captures each staff's unique ID number. Once this process is complete the staff is deemed to be at work, and are paid from the time they are clocked in Staff clock out at the end of each shift by re-scanning their electronic swipe card. With all staff trained on the company's code of ethics, the clocking in and out system is not monitored While the production staff work a standard 8-hour day, where necessary, overtime is worked to complete orders. The shift supervisor is not required to monitor the extent of overtime worked; however, the supervisor does ensure staff do not take long breaks which would increase the amount of overtime hours captured The details of hours worked each week is sent electronically to the payroll department, where the hours worked are allocated to each staff's record by the electronic payroll system. Clerks in the payroll department compare hours from the time recording system to the electronic payroll system and enters a password to confirm both systems agree. The password also authorizes the calculation of the net pay. To ensure there is no delay in processing the payroll the password is generally known in the department.. On a weekly basis the electronic payroll system calculates the gross pay, statutory deductions and net pay for each production staff The list of net pay for each staff is sent electronically to the accounts department. An accounts clerk checks the bank details for each staff, then authorizes and makes payments to staff using the company's online banking system. The finance director reviews the total amount per the payroll records on a periodic basis to ensure the amount is correctly reflected in the management accounts

Answer rating: 100% (QA)

Objective 1 Accuracy and Timeliness of Payroll Processing Assertion The payroll system should accurately calculate and process employee salaries wages ... View the full answer