Internal control system (ICS) in payroll accounting

Development and implementation of an internal control system (ICS) in payroll accounting

Basics and requirements

• Legal basis (GoBD, KonTraG).
• Definition of an internal control system.
• Professional structure of an ICS: The COSO framework.
• Risk management: from risk strategy to reporting.

Structure and implementation

• Process management: standardization and transparency, definition of key processes.
• ICS audit areas: Structure, tasks and objectives.
• Practical company-specific design.
• Risk assessment, standard controls, error messages, corrective measures, data security.
• Creation of schedules and flow charts as well as a test matrix.
• Establishment of plausibility checks.
• Conception of IT-supported testing and control procedures.
• Documentation and archiving.

Checking the payroll in detail

• Audits and reports on the monthly and annual financial statements.
• Centralized/decentralized data acquisition, interfaces and communication.
• Process analysis and optimization.
• Recognize and avoid gross/net invoice risks.
• Control parameters and standardized check routines in payroll accounting.
• Four-eyes principle, separation of functions, recording and processing controls.

Use internal optimization parameters

• Identify, describe, optimize and implement processes.
• Process security through simple documentation in the "ICS folder".
• Development and implementation of an HR cockpit with EXCEL.
• Key personnel figures and wage type analyses: working with dashboards and dynamic evaluations.
• Use of risk management software.
• Focus on the most important control fields.
• Authorization concepts.

External examinations

• Wage tax, social security, auditing, customs.