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Ahmed Mahmoud
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6 views

Assignment

Uploaded by

Ahmed Mahmoud
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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As the internal auditor for No-Wear Products, you have been asked to document the

company’s payroll processing system. Based on your documentation, No-Wear


hopes to develop a plan for revising the current system to eliminate unnecessary
delays in paycheck processing. The head payroll clerk explained the system:

The payroll processing system at No-Wear Products is fairly simple. Time data are
recorded in each department using time cards and clocks. It is annoying, however,
when people forget to punch out at night, and we have to record their time by hand.
At the end of the period, our payroll clerks enter the time card data into a payroll
file for processing. Our clerks are pretty good—though I’ve had to make my share
of corrections when they mess up the data entry.

Before the payroll file is processed for the current period, human resources sends us
personnel changes, such as increases in pay rates and new employees. Our clerks
enter this data into the payroll file. Usually, when mistakes get back to us, it’s
because human resources is recording the wrong pay rate or an employee has left
and the department forgets to remove the record.

The data are processed and individual employee paychecks are generated. Several
reports are generated for management—though I don’t know what they do with
them. In addition, the government requires regular federal and state withholding
reports for tax purposes. Currently, the system generates these reports automatically,
which is nice.

REQUIRED
a. Prepare a context diagram and Level 0 DFD to document the payroll processing
system at No-Wear Products.
b. Prepare a document flowchart to document the payroll processing system at
No-Wear Products.

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