Summary of Payroll Processing and Fixed Asset Procedures.

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Summary

The chapter began with an examination of payroll procedures. The discussion focused on fundamental tasks; the functional departments; and the documents, journals, and accounts that constitute the payroll system. Common exposures and controls that reduce risks inherent in payroll activities were explained. In addition, we reviewed the operational features and the con- trol implications of technology used in payroll systems.

The second section of the chapter presented the typical features of the fixed asset system. Fixed asset accounting involves three classes of procedures: asset acquisition, asset maintenance, and asset disposal. We examined the files, pro- cedures, and reports that constitute the fixed asset system. We concluded our discussion by reviewing the principal risks and controls in the system.

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