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PROJECT TOPIC AND MATERIAL ON Payroll Management System: An Effective Means of Mitigating Against Fraud in an Organization
The Project File Details
- Name: Payroll Management System: An Effective Means of Mitigating Against Fraud in an Organization
- Type: PDF and MS Word (DOC)
- Size: 561KB
- Length: 44 Pages
1.1 Background of the Study
Payroll in the sense of “money paid to employees” plays a major role in a
company for several reasons.
From an accounting perspective, payroll is crucial because payroll and
payroll taxes considerably affect the net income of most companies and
because they are subject to laws and regulations (e.g. in the US, payroll is
subject to federal, state, and local regulations).
From a human resource viewpoint, the payroll department is critical
because employees are sensitive to payroll errors and irregularities: Good
employee morale requires payroll to be prepared timely and accurately.
The primary mission of the payroll department is to ensure that all
employees are paid accurately and timely with the correct withholdings
and deductions, and that the withholdings and deductions are remitted in
a timely manner. This includes salary payments, tax withholdings, and
The most common payroll fraud scheme includes Ghost Workers
schemes which occur when a person not employed by the company is on
the payroll. Falsified Pay is another scheme type where fraudster who
inflate hours worked, Inflating benefits, Inflating pay rates and overstated
salaries and Payroll tax theft. Commissions Schemes is another approach
which occur when the amount of sales made or the rate of commission is
The most daring scheme involves creation of a ghost employee. A ghost
employee is someone recorded or placed aid on the payroll system, but
who does not work for the business. The ghost can be a real person who
knowingly or not is placed on the payroll, or a fictitious person invented
by the fraudster. The fraud attacks the payroll system with false paid
employees. The aim of the fraud is to have a wage paid to the ghost and
collected by the dishonest employee. This is done by entering the ghost
employee into the payroll system. The fraud does not require an
accomplice but, depending on how wages are paid, an accomplice may
make the fraud easier to conduct because it will eliminate any need to
convert the payment from the ghost to the fraudster.
1.2 OBJECTIVES OF THE STUDY
1. Main aim of developing Employee Payroll Managementis to provide an
easy way not only to automate all functionalities involved in managing
leaves and Payroll for the employees of Company, but also to provide full
functional reports to management of Company with the details about
usage of leave facility.
2. How payroll system can mitigate fraud in an organization
3. Review the effectiveness of payroll system management in an
1.3 SCOPE OF THE STUDY
The study is meant to cover Nigeria Port Authority Lagos Island. There is
problem of non-availability of adequate reliable information and statistical data
for the study in the questionnaire distributedto some staff, it was jeopardized by
their hesitation to give full details.
1.4 RESEARCH QUESTIONS
Can payroll management system effectively detect employee fraud?
Can Organizational fraud be mitigated by payroll management system?
Can ghost workers be easily uncovered with payroll management system?
1.5 RESEARCH HYPOTHESIS
The following are the tended research hypothesis
Ho: Payroll management system can effectively detect employee fraud
Hi: Payroll management system cannot effectively detect employee fraud
Ho: Organizational fraud can be mitigated by payroll management system
Hi: Organizational fraud cannot be mitigated by payroll management
Ho: Ghost workers can be easily uncovered with payroll management
Hi: Ghost workers cannot be easily uncovered with payroll management
1.6 Significance of the study
To improve efficiency.
Quickly find out information of an employee details.
To provide easy and faster access to information.
To provide user friendly environment.
1.7 Historical Background of the Case Study
The Nigerian Ports Authority (NPA) is a federal government agency
that governs and operates the ports of Nigeria. The major ports controlled
by the NPA include: the Lagos Port Complex and Tin Can Island Port in
Lagos; Calabar Port, Delta Port, Rivers Port at Port Harcourt, and Onne
Port. Operations of the NPA are carried out in affiliation with the
Ministry of Transport and the Nigerian Shippers’ Council. The Head
office of the Nigerian Ports Authority is located in Marina, Lagos.
However, with the concessioning programme of the federal government,
which is aimed at promoting efficiency through, public and private
partnership, the Nigerian Ports, has since 2005, being concessioned.
This landlord arrangement as they call it, has fostered better relationship
and high turn-out of goods and services in and around the Nigerian Port
system either in the Eastern or the ever-busy Western zone
The Lagos Port Complex is located at Apapa in Lagos. Together with the
Tin Can Island Port, it serves Lagos and western Nigeria.