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Jemshah
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Asked: 2023-01-20T15:06:51+00:00 In:

Explain four measures that a firm may take to prevent fraud in the payroll. (8 marks)November 2022

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Explain four measures that a firm may take to prevent fraud in the payroll.
(8 marks)November 2022

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    Enlightened
    1. Segregation of duties: This involves separating the responsibilities of creating, approving, and processing payroll to different employees, so that one person is not responsible for all aspects of the process.
    2. Background checks: Conducting background checks on new hires and current employees to identify any history of fraud or financial crime.
    3. Timely reviews: Regularly reviewing and reconciling payroll records, including employee timecards and paychecks, to identify any discrepancies or suspicious activity.
    4. Strong passwords: Implementing strong and unique passwords for payroll systems and regularly changing them to prevent unauthorized access.
    5. Training: Regularly training employees on fraud prevention and encouraging them to report any suspicious activity.
    6. Auditing: Conducting regular internal audits of payroll records to identify any errors or discrepancies.
    7. Access controls: Limiting access to payroll systems and records to only authorized employees and implementing a system of role-based access controls.
    8. Whistleblower policy: Implementing a whistleblowing policy to encourage employees to report any suspicious activity or fraud without fear of retaliation.
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