The Financial Strength of a Tax Exempt HCO - Assignment Example

Below are the three critical internal control practices for safeguarding the integrity of the payroll register:
Separation of Duties
The first key step to safeguard the integrity of the payroll register is to ensure that the organization's payroll system is processed by different people. This includes ensuring that the employees are not allowed to process or approve issues that affect their pay.

Accountability, Authorization, and Approval
Once an employee has been authorized to handle the payroll register, it is important for the management to make follow-ups by reviewing the payroll system regularly to ensure that the entries in the payroll system and the actions of the employees handling the payroll are in line with the policy and principles.

Protecting the resources of employees is very critical. Therefore, to maintain the integrity of a payroll register, it is best practice for the management to ensure that payroll checks and statements are kept in a secure location and ensure that access of personnel to the payroll is restricted only to personnel who require information from the register.

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