Chestnut Productions has installed a new payroll module to its existing accounting system which integrates with the general ledger application.

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Chestnut Productions has installed a new payroll module to its existing accounting system which integrates with the general ledger application. The new payroll application was purchased from the software company that supplied the general ledger application. The new system is more complex than the old system, but its reporting function provides more details. For example, the new application calculates: leave, superannuation, payroll tax and work cover expenses, as well as the corresponding accounting accruals. There was very little time available to implement the new system, so the old application ceased operation on 31 December 2019 and the new application went live on 1 January 2020. There was no time to run the two systems in parallel as well as limited staff training and testing of the new application.


Required

What concerns would you have about the payroll application’s integration with the general ledger application?

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Related Book For  answer-question

Auditing A Practical Approach

ISBN: 9780730382645

4th Edition

Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton

Question Details
Chapter # 3- Risk assessment I
Section: Review Questions
Problem: 30
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Question Posted: September 16, 2023 13:09:06