Chapter 12, Problem 12.1RQ

To determine

Concept Introduction:

Audit procedure: audit procedure is a method performed by the auditor, to gather the possible document that helps the auditors to make a strong conclusion. The audit procedure helps to determine the nature of the financial information provided by the customers and all kinds of risks that occur in the financial statements. Audit procedure performs different test of controls to avoid the risks.

To describe: the policies and procedures that involved in human resources management process

Explanation of Solution

In policies and procedures, the authorization is a type of foundation that included the authority to perform the various steps of transactions according to the law and regulations. Authorization is also played an important role in the human resources management process that included the following points:

• The policies and procedures in the human resources management process involved the authority of hiring new employees for the entity and terminate the existing employee from the entity.
• In addition to the policies and procedures around payroll transactions, the human resources management process involved the calculation and evaluation of the payable amount of the employees.
• Other procedures in the human resources management process involved the activity related to the employees included their salary structure, awards, performances, retention, and setting of pay rates. The procedures involved in payroll transactions are based on the attendance and the performance of the employee. So the human resource management should evaluate the whole performance of the employee to make the correct payroll transactions.