- Published: January 11, 2022
- Updated: January 11, 2022
- University / College: University of Southern California
- Level: Intermediate School
- Language: English
- Downloads: 47
Accounting and Finance al Affiliation Accounting and Finance Why is this differentiation important especially in evaluatingthe financial strength of a tax exempt HCO?
Differentiation is critical when evaluating the financial strength of a tax-exempt HCO because it ensures that every aspect of the companys performance is evaluated to ensure only the items not eligible for taxation are exempted from tax. Differentiation is also important since it helps sped up the evaluation process since items are categorized into different groups.
Name and discuss three critical internal control practices that ensure the integrity of the payroll register.
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 organizations 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. In additionally, the management must ensure that the confidentiality of the payroll register is maintained and giving access only to the personnel authorized to hand the payroll register.
Secure the Payroll Register
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 are restricted only to personnel who require information from the register.