Payswell Company, a small manufacturer, has been in business for 10 years. Senior management is thinking about outsourcing the company’s payroll process.

a. What are three important objectives of a payroll process?
b. What are the key risks that threaten the achievement of those objectives?
c. What are the potential benefits of outsourcing the payroll process?
d. What new risks may arise if the process is outsourced?
e. How should Payswell’s management:
1. Identify the key controls over the outsourced payroll process?
2. Determine whether those controls are designed adequately and operating effectively?