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To enable me to help you on a timely basis, you need to make clearer the source of your query, and your query. For example, if this is the name of an exam Q, please cite the exam reference.

Is the paragraph a direct quote? (If yes use ” ….”) and be clear whether it is from the Q or the answer (or something else).

This minimum information would go some way to interpreting what you mean by “explanation of this” – for example, if the quote is supposed to be of a control, you might be asking what is the objective or purpose of this control.

Please look at posts started by Gahngeun here https://opentuition.com/forum/ask-acca-tutor-forums/ask-the-tutor-acca-audit-and-assurance-aa-exams for examples of clear questions.

As it says in the answer:

“This ensures that payroll records are complete, that
employees are paid for hours worked and that all hours are
recorded.”

In more detail, though not called for by the question:

1. Authentication and Authorization: The use of sequentially numbered key cards containing unique employee numbers and names helps ensure that only authorized staff members can clock in and out. This controls access to the system and prevents unauthorized individuals from manipulating attendance records.

2. Data Accuracy: The requirement for staff members to clock in and out using key cards ensures that accurate data is recorded in the system. This helps prevent errors in attendance records, which are critical for calculating accurate employee salaries and benefits.

3. Data Integrity: Sequence checks on the key cards and the data recorded in the clocking in system are carried out by the human resources supervisor. This helps maintain the integrity of the data, ensuring that it has not been tampered with or altered inappropriately. Any discrepancies can be identified and addressed promptly.

4. Prevention of Time Fraud: Requiring employees to use their unique key cards for clocking in and out helps prevent time fraud, such as “buddy punching” (where one employee clocks in or out on behalf of another). The sequential numbering and checks add an additional layer of control to discourage fraudulent activities.

5. Preventing Duplicate Entries: Sequentially numbered key cards can help prevent duplicate or erroneous entries into the system. This control helps maintain the accuracy of attendance data.

It is a true statement – effectively you’re identifying absenteeism

For each employee, hours worked will be the difference between the time they clock in and clock out.

Suppose cards were numbered from 00101 to 00300 (say) – i.e. there are 200 employees.
A sequence check would confirm that the hours of all employees is captured. Any missing would need to be confirmed as absence.