Chapter 6: AIS

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1. Access Controls Assets are labor and cash which can 10. Entries from DEBIT: wages payable
both be misappropriated through Disbursement CREDIT: Cash, and all liabilities
improper access. voucher
2. Accounting Records: 1) time cards, Job tickets, and 11. General 1) labor distribution summary from cost
Audit trail for disbursement vouchers ledger accounting
employes includes 2) Journal information from labor function 2) disbursement voucher from AP
the following distribution summary, and payroll receives... 3) Journal voucher from cash dibsbursements
documents register
12. Human Provide real time access to personnel files
3) subsidiary ledger accounts: WIP
resource for purpose of direct inquiries and making
accounts
management changes in employee status.
4)The general ledger accounts: payroll
system (HRM)
control, cash, payroll imprest account
13. Human enter data in employee records file in real
3. After receiving info 1) Prepares payroll register (gross pay,
resources time from terminal.
Payroll clerk OT, net pay, deductions)
with HRM
2)Enters info into Employee payroll
records 14. Independent 1) Verification of time cards
3)prepares employee paychecks verification 2) Paymaster verifies employee existence
4)sends paychecks to distribute examples 3) AP clerk verifies accuracy of the payrol
paycheck F register before creating a disbursement
5)Files time cards, personnel action voucher
form, payroll register 4) General ledger verifies whole process by
reconciling labor distribution summary and
4. Benefit/risk of saves money because don't have to
payroll disbursement voucher
payroll outsourcing run internal payroll operation, risk is
outside org has access to confidential 15. Input 1) controls for missing data, range
employee data Controls (IT 2) check digit control prevents wrong access
controls)
5. Cash disbursement along with disbursement voucher and
clerk sends copy of payroll register to AP deparment, 16. Job tickets capture time that individual workers spend
imprest check to.. where they are filed. Journal voucher is on each job
then prepared and sent to GL function. 17. Labor where charges are summarized after cost
6. Cost accounting cost accounting department enters job Distribution accounting summarizes labor costs to the
cost data in real time to create the Summary WIP account and forwarded to the general
labor usage file ledger

7. Difference in all steps similar except digital journal 18. Output Loss or misdirection of journal vouchers,
Advanced tech vouchers are entered into journal Controls account summary, and payroll checks. Can
payroll systems voucher file, and GL is updated include email copies,direct deposit
immediately 19. Payroll From Personnel Department:
8. Distribute paycheck To prevent fraud use paymaster who is department 1) Pay rate 2)withholding data
separate from payroll function receives From Production department:
(authorization/preparation). Valid 1) hours worked
employee must claim check 20. Payroll Employee checks are drawn on this account
9. Employee time- 1) Biometric clocks: fingerprints/hand Imprest which is used only for payroll. Funds must be
keeping with HRM scan account transferred from general cash account
options 2) Magnetic swipe cards: swipe + pin before paychecks can be cashed.
3) Proximity cards: providence point 21. Personell identify employees authroizes to receive a
4) mobile remote devices: clock in via Action Forms paycheck and are used to reflect changes in
cell phone/ lap top. Popular w hourly pay rates, payroll deductions, and job
employees in the field classification
22. Personnel Prepares personnel action forms to the
Department prepare payroll function
23. Prepare Accounts Payable (1 of 2) AP clerk reviews payroll register for accuracy and then prepares cash disbursement
voucher for amount of the payroll.
24. Prepare Accounts Payable (2 of 2) Records voucher in register and submits voucher packet (voucher and payroll register) to
cash disbursements. Copy is sent to general ledger
25. Prepare cash disbursement upon receipt of the voucher packet, cash disbursement prepares a single check for all of
the payroll and deposits it in payroll imprest account.
26. Process controls (IT) 1) Error Message: mismatches
2) Passwords: unauthorized access
3) File backup: data loss
27. Production Department prepares two types of time records:
Job tickets
Time cards
Sent to prepare payroll funciton
28. Segregation of duties 2 Payroll has custody of assets (paychecks) and record keeping responsiblity. Reduce risk
by assigning roles to AP and cash disbursements. AP authorizes and Cash D writes check.
29. Segregation of Duties (physical control) Time keeping (production) and the personnel function should be separated. Employees
could manipulate their rates
30. Supervision Observe time-keeping processes
31. Time Cards capture the time the employee is at work
32. Transaction Authorization (physical Personell action form helps keep payroll records current.
payroll control)
33. With this info GL makes what accounting DEBIT: WIP (direct labor)
entries from labor distribution summary DEBIT:Factory overhead (indirect labor)
CREDIT: Wages payable