Payroll Accounting Cycle Essay

The paysheet news report round of golf or payroll round of drinks is basically a process for put down time and attendance and converting that data into paysheet calculations and payroll disbursements (Robertson, 2003). This cycle covers all activities cogitate to payroll from hiring and light to pay distribution.The payroll cycle has four basic stages recruitment, which covers the identification of va reart positions, advertising for the vacancies, and selection of a candidate for hire, time and attendance, which is a disgrace of all the work hours of the employees, salary distribution, which involves the depositing of paychecks into the employees reputation, and unfunded liability, which determines the unfunded annual leave and judicial separation pay ( paysheet bike, 2005).The most important interior experience process in the Payroll Accounting Cycle is the division of duties (Bierstaker, 1997). on a lower floor this apply process, the main tasks should be handled by different people.This means that processes such as the hiring and firing of personnel and the management of bear on relations, the supervision approval of work time, the supplying and timekeeping of payroll, the payroll check preparation and colligate payroll reports as well as the payroll distribution and actual handgrip of checks and its subsequent distribution to employees, should all be handled by five separate auditors to figure the integrity and accuracy of the Payroll Cycle (Robertson, 2003).Another specific internal underwrite in the Payroll Cycle is by implementing authorization requirements. This basically acts as a checks and balance feature in the Payroll Accounting Cycle (Bierstaker, 1997). In this control process, the pay base data, which is the data on which pay is based including factors such as hours, piece rate volume, and incentives, and personnel hiring and firing decisions, should all be initially approved by a supervisor or an independent department ( Robertson, 2003).Providing that all these controls are implemented properly, there should be no relative weaknesses in the Payroll Cycle. in that respect are probabilities however that the internal control systems will fail to detect visible misstatements. The methods that can be used to site the strengths and weaknesses in the Payroll Accounting Cycle of a business involve protective(predicate) auditing, fortune assessment and control encounter assessment (Bierstaker, 1997).In conducting control riskiness assessments it should incessantly be remembered that if the control risk is assessed actually low, substantive audit procedures can be limited in cost-saving ways. If it is assessed very high, substantive procedures will need to be designed to lower the risk of failing to detect material misstatement in the account balances (Robertson, 2003). There is no perfect Payroll Accounting Cycle and control measures should always be implemented and audited periodically.