Payroll procedures, which focus on segregation of duties
Accountant drafts payroll amounts for each employee
Controller/Finance Manager reviews the drafts and approves the amounts
Reconciliation is preformed and reviewed to ensure the amount approved is the amount disbursed
Related journal entry is reviewed and approved
Detailed review of payroll information
Each individual employees’ details are reviewed
Usually junior accountants are not responsible for payroll as it includes very sensitive, personal information.
As we mentioned with disbursements, need a detailed set of procedures that include segregation of duties
Review should include a detailed review of payroll info – even down to the individual employee level