The remainder of this chapter is organized in terms of the three basic functions the AIS provides in the HRM/payroll cycle: processing transactional data about employee activities, safeguarding the organization’s assets, and providing information for decision making. We begin by describing the basic activities in the payroll cycle. Next, we discuss the control objectives of the HRM/payroll cycle and describe applicable control procedures for mitigating the major potential threats in this cycle. We conclude this chapter with a discussion of key decisions in the HRM/payroll cycle and identify the information needed to make those decisions.