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1)Make recommendations in order to establish a strong internal control system for the payroll process of...

1)Make recommendations in order to establish a strong internal control system for the payroll process of Mulgoviey Story Cut Farming Company

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Recommendations to establish a strong internal control system for payroll process-

1) The access to the records of payroll should be limited to only entrusted and authorised personnel only.

2) Regular inspection of the records of payroll needs to be done in order to ensure their accuracy. Any material misstatements either caused by error or fraud will be detected at an early stage by following this procedure.

3) A separate bank account needs to be created for the processing of payroll and it should contain only as much funds as required for completing payroll.

4) Periodic audit of the payroll records needs to be done by an independent auditor to ensure their effectiveness, efficiency and reliability.

5) Various security measures need to be properly implemented like locking up payroll records to prevent unauthorized physical access. As far as electronic records are concerned, they should be protected using a strong password.l

ekkarill92 answered 1 year ago
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