Why is it important for the entity to establish control activities over the classification of payroll transactions?

The control system of the client must manage the classification of the payroll transactions to ensure that the appropriate payroll account has been credited and edited for each payroll transaction. The control system should ensure that he proper classification between direct and indirect labor exists, otherwise the inventory and cost of goods sold cannot be valued properly.Any mistake in charging expenses in the payroll account will lead to misstatement in the financial statement