Payroll Monitoring

Detect erroneous and fraudulent activities before payments are made.

Payroll Monitoring

Payroll Fraud

One principal across all businesses is Payroll. It is often the subject of error, fraud and theft, due to changing variables such as complex tax regulations, time tracking, attendance, incentive-based pay and changes in contractual salary agreements. Additionally, high volume and frequency of transactions make Payroll an intricate process to assess.

According to the Association of Certified Fraud Examiners (ACFE), companies lose 5% of their annual revenues to occupational fraud schemes[1], with most of these being numerous and varied, such as:

  • Ghost employee schemes – adding fictitious (ghost) employees to the payroll
  • Overpayment schemes – such as submitting dubious overtime claims
  • Commission schemes – inflating amount of sales or the rates of commission
  • Modifying employee information - making unauthorized changes to employee records, earnings, rates, etc. to make false claims for compensation

CaseWare™ Analytics Payroll Monitoring

The CaseWare™ Payroll Monitoring solution allows an organization to detect erroneous, suspicious and fraudulent activities before payments are made. The solution provides the facility to define the entire control environment, from employee record creation to final salary payments. Once completed, the monitoring framework examines all electronic activity to detect control breaches and automatically alerts the relevant persons to action the items discovered, in a timely manner.

Solution Benefits

  • Fewer Improper Payments

Detect potential fraudulent or erroneous payments before they are made.

  • Less Segregation of Duties (SoD) violations

Identify all potential SoD violations. Prevent unauthorized changes to employee and bank details, as well as to payroll codes.

Download PDF

24/7 Automated Analysis

Ongoing and automated analysis of all data within financial and HR systems allows you to discover anomalies immediately.

Supports Existing Systems

Support any business process on any system and data from any source, without additional infrastructure and integrate easily with any system:

  • ERPs such as SAP®, Oracle®, etc.
  • Payroll applications such as Ceridian, Intuit®, Paychex®

Workflow for Managing Issues/Anomalies

Once an anomaly is identified, alerts (equipped with resolution guidelines) are automatically sent to the business stakeholder who can remediate. The workflow engine is completely configurable and will result in a streamlined process including multiple levels of escalation, setting deadlines, adding supporting documentation, etc.

Suspicious Activities

  • Active employees not paid
  • Payments after contract ends
  • Ghost employees
  • Irregular payments
  • Changes in Basic Pay

Overtime Exceptions

  • Overtime abuse
  • Overtime rate exceptions
  • Master Data Amendments
  • Changes in bank account numbers
  • Employees added or removed
  • Payroll codes added
  • Changes in taxation methods
  • Reactivation of payroll codes

Master Data Exceptions

  • Duplicate bank account details
  • Missing bank account details
  • Duplicate payments
  • Duplicate Tax ID
  • Tax ID Errors