Question

What internal control procedure(s) would be most effective in preventing the following errors or fraudulent acts? a) An inadvertent data entry error caused an employee’s wage rate to be overstated in the payroll master file. b) A fictitious employee payroll record was added to the payroll master file. c) During data entry, the hours worked on an employee’s time card for one day were accidentally entered as 80 hours, instead of 8 hours. d) A computer operator used an online terminal to increase her own salary. e) A factory employee punched a friend’s time card in at 1:00 P.M. and out at 5:00 P.M. while the friend played golf that afternoon. f) A programmer obtained the payroll master file and increased his salary. g) A large portion of the payroll master file was destroyed when the disk pack containing the file was used as a scratch file for another application.

Answer 1

Answer: Summarized the given questions, providing internal contool poocedurels) for each question; @Contool poocedute for poeventing data entoy_08000 → Fach depaotment in an organization should maintain wage rates of employees that is called bij "Hash total" → Update the employee wage rates (hash total), after undating compare the hash total with payroll master file total. Each time of updating checks the hash total of employee of employee wage rates for preventing → Finally, this control procedure needs one supervisor for all kinds of devices control procedure for preventing data in the payroll master file: first the payroll master file needs secursity from accesing. → A multi factor authentication technique can be applied to the payroll masteofil this should only allow the authenticated people to access the payroll master file. 7 Each department in an maintain a no of record counts of employees organization should erroos

can an The record count be checked for each payroll processing of organization. → An organization should issue the poucheck of each employee to identify the cotlect beceipient or employee . * An ooganization should periodically check the payroll file by taking pointouts. © control procedure for preventing incorrect entry of employees working time: The management of an organization should use the limit check for enteting the employees working hours: This limit check set the limit for a particular data entry. If the user enters the data above the limit means it will alext message to the used. → If the limit check allows the overtime then the user enters the data also. - Otherwise, the user only enters that particular data. @ Control procedure for preventing to incoease the own salary of the employees: --> An organization has one seco et password for accessing online terminals. → that passwood should access by the give one

was a user is user. an ooganisation should authorized peoples of an organization ③ - Each transaction compatibility test. Because this compatibility test checks the passwold entered by the correct not - otheowise, it don't give access a modification authority to the particular - Each dept in maintain total batch salary a check this with cooresponding total generated during each payroll processing. @ Control procedure for preventing unauthorized carod punching; - organizations use the biometric control technique for time in a time out -> organizations fix the video camera at the entrance of the door for Checking unautho sized card punching. Collect the timing data about the particular employee and checks the data during payroll processing. ② Control procedure for preventing payroll master file from programmer; → An ooganisation first implements the access authority of the payroll master file. - An organisation should implements the а a

access one authentication and authorization Centole of each employee. - It contains user ID's, pasword and control matrix. ~ This control matrix only allows the authorized person for accessing the production data base. + Each dept in an oeganization should maintain total batch salary scheck this with corresponding total grecated during each payroll processing. - Finally, this contood procedurse needs supervisor for all kinds of beviews. ☺ control procedure for preventing a parceli master file from destroys: An organisation should aluscuys , maintain internal and exteonal file labels. Those labels are used to identify the file content and the active files expiration date. The computer operator is trained to evaluate the exteonal a internal labels of the files. The internal labels of the file can bechecked by the program before processing, s Ooganisations always maintain a backup file for all the important files. 7 *
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