Payroll Cycle ACC 556 (2 Pages 587 Words)

The amount of risks in the payroll is significant and can include the creation of fictitious employees and the falsification of reported employee hours worked. In addition, a segregation of duties should exist between authorization, recordkeeping and custody of the asset, to avoid collusion or override of internal control. In addition, to evaluate if the account balances related with payroll are fairly stated in accordance with accounting standards Management should implement some controls to identify, measure, monitor, and control that risk. The human resources department has the ability to hire new employees, update and maintain employee personnel records, and record department salary and position information. The employees...