A)There Are Several Internal Controls in the Human Resources and Personnel

question 10

Essay

A)There are several internal controls in the human resources and personnel function that are important from an audit perspective.For example,there should be an adequate investigation of the competence and trustworthiness of new employees.Discuss other internal controls in the personnel and employment function that are important from an audit perspective.B)There are several key internal controls over the timekeeping and payroll preparation function that should be present.For example,adequate control over the time on employees' time records includes the use of a time clock or other method of making certain that employees are paid for the number of hours they worked.Discuss other key internal controls over the timekeeping and payroll preparation function.C)There are several key internal controls over the payment of payroll function that should be present.For example,the payroll should be distributed by someone who is not involved in the other payroll functions.Discuss other key internal controls over the payment of payroll function.

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Definitions:

Normal Balance

The account side (either debit or credit) that documents the account's increases, based on the type of account.

Financial Statement

Official documentation of a business, individual, or entity's financial transactions and status.

Permanent/Temporary

Classification of employees or work status based on duration of employment, with permanent indicating long-term employment and temporary indicating short-term engagements.

Unemployment Merit Tax Rate

A tax rate assigned to businesses based on their history of unemployment claims filed by former employees, affecting the state unemployment tax rate.