Payroll controls at Sheridan require that all changes to payroll such as new hires, terminations, pay rate changes and tax changes must be authorized by Rosie Hendricks, the Accounts & Admin Manager, and Jay Alexander, the Payroll Administrator. Rosie authorizes the monthly payroll runs and ensures tax codes are correctly input while Jay inputs pay raises, bonuses and conducts the payroll processing. Copies of documents relating to pay rate changes are kept and provided to Rosie for updating payroll systems. Access to payroll records is restricted through password protected systems that require strong, randomly generated passwords changed every three months. Separation of duties exists as Jay prepares payroll and Rosie authorizes changes, while the finance director James Clark makes

1. Payroll Controls
Expectedpayroll controls Are these in existence atSheridan?
All changestothe payroll are authorised:
 Starters
 Leavers
 Rate of pay changes
 Rate of tax changes
All changes to the payroll isauthorised by
Rosie Hendricks an Accounts & admin
Manager and jay Alexandera payroll
administrator
 They Make sure that all new
employee detailsare passedto Jay for
set up on payroll system
 They Make sure to remove an
employee wholeavesor retire from
the payroll system
 Rosie Make sure that the tax coding
noticesfrom HMRC are inputcorrectly
 Rosie Authorise changesmade to the
payroll while jay put any raises of
bonusesin the payroll system
 Rosie Authorise and check the
monthly payroll run while jaydo the
process
Change tracking
Copiesare keptof changesto the payroll – such
as rate changes
Every year the salary rates are discussedand if
any rate risesare agreed, it shouldbe
recordedin minutes. The Copy of minutesis
givento the accounts and admin manager
which is Rosie Hendricks.And ask Jay to
amend the rate ofpay in payroll system.
Error-checkingreports
Showitemsthatfall outside of normal payroll
No it doesn’tshow itemsthat fall outside of a
normal payroll as each person weekly
complete a timesheetshowingthe hours
worked each day. And having it signedby the
line manager to show that it’saccurate.
Accessrestrictedtopayroll records
Appropriate measurestakentoprotectpayroll
data and personal detailswithrestrictedaccess
to online and paperbasedrecordsincluding
payslips.
The payroll systemis kepton a networked
drive on Sheridan AV’scomputer system.This
systemis password protected. OnlyRosie,jay
and James have access to it
James as the finance director insistedthat
password must be strong and randomly
generated, usinga minimumof 12 characters
And the systemrequiresthemto change their
randomly generatedpasswords everythree
months.
Since the payroll isconfidential jay runs the
payroll on Jamesoffice to do the
administration
Separationof duties
Jay Alexanderthe payroll Administrator do the
process of preparing the payroll .

2.  One personpreparespayroll and
anotherauthorisesit
 Anotherpersonmakespayments
Rosie Hendricks an Account and admin
manager authorisedthe changes in the
payroll.
James Clark as the finance Director is the one
who makes the payments
Automatedtimekeepingsystems
Computerisedtime clockof calculatingweekly
pay andovertime
They don’t have Automated timekeeping
systems.Since they only have basic time sheet
and is only pre- printed.The employee was
just asked to fill inthe detailsby hand.
Calculationverification
For any manual calculationstothe payroll
The employee are the ones who calculatedthe
total hours and minutesfor the day an wrote
this into the form manually.
Hours worked/overtime authorisedforweekly
pay
All other staff are paid monthly and the
Sheridandoes not pay overtime for staff
unlessthese are exceptional circumstances.
Bank transferstoemployeesare authorisedby
twoseniormembersof staff
After Rosie and James authorise the monthly
payroll . It is passedto Mark Avon to prepare
the bank transfer listing
Payroll checkingaccount – thisshouldbe a
separate accountto minimise riskof fraud
There’sno separate account