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Not sure if it is a conflict of interest but it is an internal control weakness. This is a weakness due to the fact that there is a potential for fraud. A person who processes payroll can make up an employee and wage amounts. However, if there are review processes in place you should be fine. It is very difficult to have segregation of duties in a small company.

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Q: Is it a conflict of interest to process payroll and enter salary information in an hr system?
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