Accounting Information Systems 9th Edition by James Hall

تمرين 4

EVALUATION OF PAYROLL CONTROLS
A Forman of a construction company is responsible for a construction crew comprised of many unskilled workers. Their tasks consist of mixing cement, digging foundations, and loading onto trucks. The work is hard, and employee turnover rate is high and individuals often leave without notice. Throughout the work week employees record their attendance on separate time cards, which the foreman approves and submits to the payroll department at the end of week. Based on the time cards, the payroll department prepares the paychecks, sends them to the foreman who then distributes the checks to his work crew.
Required
a. Prepare a systems flowchart of the procedures described here.
b. Identify any control problems in the system.
c. What sorts of fraud are possible in this system?