Following is a list of six control plans from this chapter (or from earlier chapters and...

Following is a list of six control plans from this chapter (or from earlier chapters and tailored to the HR management and payroll processes of this chapter):

Control Plans

A. Personnel termination procedures

B. Computer matching of employee ID numbers

C. Independent reconciliation of payroll bank account

D. One-for-one checking of hours per attendance time data and hours shown on pay stubs

E. Reconciling total hours per attendance time data with total hours per job time data

F. Computer agreement of batch totals

Required

Listed next are four process failures that have control implications. Write the numbers 1 through 4 on your solution sheet. Next to each number, insert one letter from the preceding list indicating the control plan that would best prevent the process failure from occurring. Also, give a brief, one- to two-sentence explanation of your choice. A letter should be used only once, with two letters left over.

Process Failures

1. A computer operator was fired for incompetence. During the twoweek notice period, the operator “fired a parting shot” by destroying several computer files.

2. A novice data entry clerk had an error rate ranging from 10 to 20 percent during the first few weeks on the job. These errors resulted in several overpayments and underpayments to employees.

3. A payroll clearing account in the general ledger is debited for the gross pay amount paid to employees and is credited for the gross pay amount distributed to jobs in process or to expense categories. In theory, the clearing account should reflect a zero balance, but it consistently shows either a debit or credit balance.

4. The supervisor of an operating department prepared a fictitious attendance time record for a nonexistent employee and then deposited the bogus paycheck to her personal bank account.