payroll coordinator, George Jones, an authorization form in order to add an employee to the payroll. After Jones enters this information into the system, the computer automatically determines the overtime and shift differential rates for the individual, updating the payroll master files.

week’s time cards and begins the computerized processing of payroll information to produce paychecks the following Friday. Jones then reviews the time cards to ensure that the hours worked are correctly totaled; the system determines overtime and/or any shift differential.

to each payroll check produced. The check stocks are stored in a box next to the computer printer to provide immediate access. After the checks are printed, an automatic check-signing machine signs them with an authorized signature plate that Jones keeps locked in a safe.

second- and third-shift employees with the appropriate shift supervisor. Jones then notifies the data processing department that he is finished with his weekly processing, and data processing makes a backup of the payroll master for storage in the computer room. Required

Identify and describe:

a. Areas in the payroll processing system where the internal controls are inadequate.

 

b. Two areas in the payroll system where the system controls are satisfactory.