Workworld ltd has a computerised payroll system all

6. Workworld Ltd has a computerised payroll system. All employees are paid by
BACS directly into their
bank account.
Which two of the following controls will be most effective at ensuring that
payment is made to the
correct employee?
A Authorisation of overtime worked
B A sample of calculations performed by the payroll package are manually
reperformed each
month
C The BACS list is reviewed by the chief accountant together with supporting
payroll
documentation
D The print out from the bank is agreed to the BACS list and any discrepancies
investigated
7. Which two of the following features in the payroll system of Tyne plc could result
in the employee
costs figure in the financial statements being misstated?

senior member of staff
C Personnel records are not kept up to date
D The payroll department receives confirmation of new employees in writing
8. For each of the following statements about internal controls over payroll, select
whether they are true or false.
The payroll should be checked back to individual employee personnel records on a
regular basis.
Leavers and joiners should be authorised by a senior member of staff.
Reperformance of calculations is unnecessary where the payroll system is
computerised.
E True
F False
9. 9 Spoon Ltd is a company that is expanding rapidly and is regularly taking on new
employees. The
payroll is processed in-house in the accounts department using a PC. The financial
controller is
worried that fictitious employees could be included on the payroll by a dishonest
employee from the
accounts department.
Which one of the following internal controls is most likely to prevent fictitious
employees from being
added to the payroll?