Payroll Flowchart Analysis Discuss the risks depicted by the following payroll system flowchart. Describe the internal control improvements to the system that are needed to reduce these risks with specific explanations. An illustration of the above flowchart: It is represented in six columns and the column header reads: supervisor; payroll; data processing; accounts payable; cash disbursement; general ledger. In supervisor column, timekeeper enters into time cards and that leads to "Review Time cards and prepares Personnel Action Form" that further leads to two source documents "time cards, per action form." Per action, form enters into prepare payroll in payroll column. Prepare payroll enters into paychecks and two source documents "payroll register, payroll register." Payroll register leads to inverted triangle and payroll leads to A. Paycheck enters into review and distribute in supervisor column leads to paycheck and that further leads to employees. In data processing column, prepare payroll in payroll column enters into payroll system. C and E lead to payroll system. Payroll system leads to employee records, CD journal, and GL. In accounts payable column, A enters into payroll register and that leads to "review/print CD voucher" that further leads to CD voucher and summary. Summary leads to D. CD voucher enters into write payroll check in cash disbursement column. Write payroll check enters into payroll check and that leads to bank. Update CD journal leads to C and summary. Summary enters into summary in general ledger column. In general ledger column, D leads to summary. Summary and summary enters into update GL and that leads to E.

Payroll Flowchart Analysis Discuss the risks depicted by the following payroll system flowchart. Describe the internal control improvements to the system that are needed to reduce these risks with specific explanations. An illustration of the above flowchart: It is represented in six columns and the column header reads: supervisor; payroll; data processing; accounts payable; cash disbursement; general ledger. In supervisor column, timekeeper enters into time cards and that leads to "Review Time cards and prepares Personnel Action Form" that further leads to two source documents "time cards, per action form." Per action, form enters into prepare payroll in payroll column. Prepare payroll enters into paychecks and two source documents "payroll register, payroll register." Payroll register leads to inverted triangle and payroll leads to A. Paycheck enters into review and distribute in supervisor column leads to paycheck and that further leads to employees. In data processing column, prepare payroll in payroll column enters into payroll system. C and E lead to payroll system. Payroll system leads to employee records, CD journal, and GL. In accounts payable column, A enters into payroll register and that leads to "review/print CD voucher" that further leads to CD voucher and summary. Summary leads to D. CD voucher enters into write payroll check in cash disbursement column. Write payroll check enters into payroll check and that leads to bank. Update CD journal leads to C and summary. Summary enters into summary in general ledger column. In general ledger column, D leads to summary. Summary and summary enters into update GL and that leads to E.

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