You are an auditor at XYZ company and you are assigned to document the company's payroll...

 

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You are an auditor at XYZ company and you are assigned to document the company's payroll processing system. The payroll system is very easy, first of all Employees record time data via time cards and hours in each department. However, manual data entry is required when employees forget to punch out, and corrections are required when data entry errors occur. Time Cards are collected into a document file which is sorted numerically by the Payroll Department. Prior to processing the payroll file, the personnel change files from the Human Resources Department (External entity), such as salary rate increases and new hires, are entered into the Payroll Database system by the clerk. Errors often arise from human resources recording incorrect pay rates or failing to delete records for terminated employees. Therefore, the data is processed by the Payroll Department in a Payroll File Database after processing the personnel changes data and the Time Cards to produce multiple documents, including individual employee salaries that will be given to employees, as well as management reports that will be given to management. The government also requires federal and state withholding reports for tax purposes, which are currently generated automatically by the system to be provided to the government. (Hint: This payroll process only consists of 2 internal entities, remember the basic concept of internal and external entities; internal entities are directly involved in the process and external entities do not have direct responsibilities to the system) REQUIRED! Prepare a document flowchart to document the payroll processing system at XYZ Company! You are an auditor at XYZ company and you are assigned to document the company's payroll processing system. The payroll system is very easy, first of all Employees record time data via time cards and hours in each department. However, manual data entry is required when employees forget to punch out, and corrections are required when data entry errors occur. Time Cards are collected into a document file which is sorted numerically by the Payroll Department. Prior to processing the payroll file, the personnel change files from the Human Resources Department (External entity), such as salary rate increases and new hires, are entered into the Payroll Database system by the clerk. Errors often arise from human resources recording incorrect pay rates or failing to delete records for terminated employees. Therefore, the data is processed by the Payroll Department in a Payroll File Database after processing the personnel changes data and the Time Cards to produce multiple documents, including individual employee salaries that will be given to employees, as well as management reports that will be given to management. The government also requires federal and state withholding reports for tax purposes, which are currently generated automatically by the system to be provided to the government. (Hint: This payroll process only consists of 2 internal entities, remember the basic concept of internal and external entities; internal entities are directly involved in the process and external entities do not have direct responsibilities to the system) REQUIRED! Prepare a document flowchart to document the payroll processing system at XYZ Company!