ADP Payroll Security and Audit 2

Question 1

What is multi-factor authentication (MFA) and why should it be enabled for ADP payroll system access?

Accepted Answer

MFA requires users to verify identity through two or more factors (e.g., password + SMS code); it significantly reduces the risk of unauthorized access even if a password is compromised

Answer

Multi-factor authentication adds a second verification step to ADP login, protecting against credential-based attacks even when passwords are stolen or guessed.

Question 2

What is a payroll internal audit and which ADP reports are most useful for conducting one?

Accepted Answer

A systematic review of payroll processes, controls, and data accuracy; useful ADP reports include the Audit Trail, Payroll Register, New Hire Report, and Terminated Employee Report

Answer

A payroll internal audit uses ADP reports like the Audit Trail, Payroll Register, New Hire, and Terminated Employee reports to verify data integrity, authorization, and compliance.

Question 3

What is 'payroll data masking' and when is it applied in ADP?

Accepted Answer

Hiding or obscuring sensitive data such as SSNs and bank account numbers in reports and interfaces so that only authorized users see the full information

Answer

Data masking in ADP partially conceals sensitive information like SSNs (showing only the last four digits) in reports and screens to limit exposure to users who don't need the full data.

Question 4

Under GLBA (Gramm-Leach-Bliley Act) and similar data regulations, what obligation do employers have regarding payroll data security?

Accepted Answer

Employers must implement reasonable safeguards to protect the security and confidentiality of employee financial information, including access controls, encryption, and incident response plans

Answer

While GLBA primarily targets financial institutions, its principles influence employer data security obligations for sensitive payroll and financial data, requiring safeguards against unauthorized access.

Question 5

What should a payroll specialist do upon discovering that a terminated employee's direct deposit was not deactivated in ADP?

Accepted Answer

Immediately deactivate the direct deposit in ADP, initiate an ACH reversal for the erroneous payment, and document the incident in the audit log

Answer

Erroneous direct deposits to terminated employees require immediate deactivation of the deposit, an ACH reversal to recover the funds, and documented internal incident tracking for audit purposes.

ADP - ADP Certified Payroll Specialist Practice Test

ADP - ADP Certified Payroll Specialist Practice Test

ADP Payroll Security and Audit 2