Internal control Misstatement likely to be prevented

$1.$ Human resource policies require an investigation of an employment application from new employees. Investigation includes checking the employee's background, former employers, and references.

$2.$ Approval of department head or foreman on time records is required before preparing payroll.

$3.$ All prenumbered time records are accounted for before beginning data entry for preparation of payroll.

$4.$ The payroll accounting software calculates gross and net pay based on hours inputted and information in employee master files, and payroll accounting personnel double$-$check the mathematical accuracy on a test basis.

$5.$ The payroll accounting software application will not accept data input for an employee number not contained in the employee master file.

$6.$ Persons preparing the payroll do not perform other payroll duties $($e$.$g$.,$ human resources or approval of time records$)$ nor do they have access to payroll data master files or cash.

$7.$ Written termination notices, with properly documented reasons for termination, and approval by an appropriate official are required.

$8.$ All checks and notices of electronic payments not distributed to employees are returned to the treasurer for safekeeping and follow$-$up$.$

$9.$ Online ability to add employees or change pay rates to the payroll master file is restricted via passwords to authorized human resource personnel.