Categories
Payroll Fraud and Risk Management

PAYROLL FRAUD

What are the most common payroll fraud areas?

  1. Unauthorized employee banking detail changes.
  2. Duplicate employee bank account details.
  3. Ghost employees.
  4. Payments to old terminations.

The abovementioned payroll fraud areas should be checked monthly by high level management in order to detect any unauthorized changes in the payroll system.

We offer companies the following services:

  1. Payroll Risk and Process Assessments.
  2. Payroll Fraud investigations.

Categories
Payroll Fraud and Risk Management

PAYROLL PROCESSES AND PROCEDURES

What are your current payroll processes and procedures?

You should ask yourself the following questions:

  1. Who is responsible to gather and compile the payroll input?
  2. Who captures and / or import the payroll input?
  3. Who is responsible to check the payroll input?
  4. Who is responsible to sign off the payroll input?
  5. Who exports the bank file from the payroll system?
  6. Who imports the bank file into the bank software?
  7. Do you reconcile the bank statement after payment to the payroll information?

The abovementioned tasks should be assigned between the payroll, finance and human resources department.

We assist companies to identify and mitigate payroll risk areas, as well as implement payroll processes and procedures.

Categories
Payroll Fraud and Risk Management

SEGREGATION OF DUTIES

Basic payroll duties include the following:

  1. Payroll input
  2. Payroll input checking
  3. Payroll sign-off
  4. Payroll payment file export
  5. Bank reconciliation

The abovementioned payroll duties should be segregated between the payroll, finance and human resources departments.

If these basic payroll duties reside only within the payroll department your payroll might be at risks for possible irregularities.

Categories
Payroll Fraud and Risk Management

PAYROLL SYSTEM USER ACCESS

Incorrect payroll user access to the payroll system is the gateway for a user to commit payroll fraud.

Do you know who has access to the payroll system?

Do you know which functionalities the user has access to in the payroll system?

Do you know which roles and functions in your organization should have access to the payroll system and the access they should have?

Yolande Schoültz is an expert in the field of Payroll Fraud and Risk Management. Contact her for your Payroll Risk Management needs.