The payroll system involves input from the HR department, numerous departments, government agencies, and the insurance company in order to establish the amount to be paid to all employees. Explain at least two potential dangers that may arise throughout this process Describe the control activities that will be used to reduce the risks in point (a) Suggestions on technology that the firm can use to automate the collecting of attendance data and how this technology may improve internal control in the payroll processing system are welcome

Payroll Cycle Activities Payroll Changes HRM Department Reports Time and Attendance Data Various Departments Payroll System Reports Payroll Taxes and Tax Reports Government Agencies Tax Rates and Instructions Paychecks Withholdings and Deductions Payroll Check Rate Changes and Instructions Checks and Reports Employees Bank Insurance and Other Companies