bulletfocus on  More detail available in this PDF version

The payroll cycle broadly covers seven key functions:
bulletHiring employees
bulletAuthorising payroll rates and deductions etc.
bulletTime and attendance recording
bulletProcessing payroll
bulletPayment of payroll
bulletRemittance of various payroll taxes (PAYG/ Payroll Tax)
bulletPreparation of payroll tax returns (i.e. BAS)

Payroll related costs commonly represent a significant part of the total costs of any business. The payments made are usually large and therefore present a set of unique risks.

Ensuring that you have adequate internal control in this area is imperative.

Key Controls

Some questions to consider in evaluating controls in the payroll cycle are:
bulletIs proper segregation of incompatible duties maintained (i.e. bank signatory is separate from person processing payroll)?
bulletAre access controls in place?

Vicki Adams

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