Overtime and Comments Working Paper
Part A
Employment
Internal Control Weakness Specific risk of fraud or error
Weakness of authorization procedures, According to case, Miss Knag call Simon Black to advise him on the relevant salary or wage to be paid to that employee. The risk is new employees would be higher than normal ones. In addition, it may give the leader a chance to add the employees who do not actually on work in order to cheat the money from company.
Weakness of authorization procedures According to case, company has appointed many new staff members but has not improved its payroll system to cope with the extra demands placed on it. The risk is there is not enough evidence for the new payroll system; it will be confused and made the mistakes.
Weakness of segregation of functions. According to case, the factory just has one person to hire or reject the applicants The risk is Fictitious employees may be added to the payroll. In addition, It will give chance to the factory overseer to hire the person without competence for the job but relate to the overseer.
Timekeeping
Internal Control Weakness Specific risk of fraud or error
Weakness of physical control, According to case, employee collects a timecard from an unlocked box which is located just within the main door. The risk is unlocked box to store timecard would be easy for employees to stead and to alternate the time card, write more times in the timecard. The result is company will pay more money on basis salary and overtime payment.
Weakness of authorization procedures, According to case, two 8 hours shifts that at the end of first shift and at the beginning of second shift happen at the same time. The risk is the record would be uncorrected. Employees would make the longer time in the record than their performance; the company will suffer a loss.
Weakness of Segregation of duties, According to case, the employees write down their hours worked for each shift as well as any overtime hours. The risk is the employees could
Employment
Internal Control Weakness Specific risk of fraud or error
Weakness of authorization procedures, According to case, Miss Knag call Simon Black to advise him on the relevant salary or wage to be paid to that employee. The risk is new employees would be higher than normal ones. In addition, it may give the leader a chance to add the employees who do not actually on work in order to cheat the money from company.
Weakness of authorization procedures According to case, company has appointed many new staff members but has not improved its payroll system to cope with the extra demands placed on it. The risk is there is not enough evidence for the new payroll system; it will be confused and made the mistakes.
Weakness of segregation of functions. According to case, the factory just has one person to hire or reject the applicants The risk is Fictitious employees may be added to the payroll. In addition, It will give chance to the factory overseer to hire the person without competence for the job but relate to the overseer.
Timekeeping
Internal Control Weakness Specific risk of fraud or error
Weakness of physical control, According to case, employee collects a timecard from an unlocked box which is located just within the main door. The risk is unlocked box to store timecard would be easy for employees to stead and to alternate the time card, write more times in the timecard. The result is company will pay more money on basis salary and overtime payment.
Weakness of authorization procedures, According to case, two 8 hours shifts that at the end of first shift and at the beginning of second shift happen at the same time. The risk is the record would be uncorrected. Employees would make the longer time in the record than their performance; the company will suffer a loss.
Weakness of Segregation of duties, According to case, the employees write down their hours worked for each shift as well as any overtime hours. The risk is the employees could