payroll

What is the purpose of separating HR and payroll departments?

Reduces risk of fictitious employees being set up.

How does the clock card system help in payroll accuracy?

Ensures employees are paid only for hours worked.

What could happen if new joiners are added to payroll without HR authorization?

Increases risk of fictitious individuals being added.

Why should hours worked be checked before finalizing payroll?

Prevents errors and overpayments in payroll processing.

What is the consequence of not approving employee holiday forms?

May lead to unauthorized leave and operational difficulties.

What is the role of the payroll supervisor in payroll processing?

Recalculates gross to net pay to identify errors.

How does requiring two staff members to prepare pay packets enhance security?

Ensures segregation of duties to reduce fraud risk.

What should be done if discrepancies are found in payroll calculations?

Discuss with the payroll supervisor for resolution.

What is the risk of not supervising the clock card process?

Increases chance of fraudulent clock-ins by employees.

What should be reviewed to confirm the setup of new joiners?

New joiner forms completed by HR before payroll entry.

What is the risk of lack of segregation of duties in payroll preparation?

Increased potential for fraud or errors in payments.

How does requiring ID for cash wage collection mitigate risk?

It ensures payments are made to the correct employees.

What could happen without preapproved bonus parameters?

Excessive bonuses may be awarded, increasing payroll costs.

What is a consequence of a financial controller handling payroll without checks?

They could manipulate payments to themselves or others undetected.

Why is proof of identity important in wage payments?

It prevents incorrect payments due to fraud or mistakes.

What distinguishes approved bonus parameters from unapproved ones?

Approved parameters limit discretionary spending on bonuses.