A Forman of a construction company is responsible for a construction crew comprised of many unskilled workers. The work is hard, and the employee turnover rate is high with individuals often leaving without notice. Throughout the workweek, employees record their attendance on separate time cards, which the foreman approves and submits to the payroll department at the end of the week. Based on the time cards, the payroll department prepares the paychecks and sends them to the foreman who then distributes the checks to his work crew. 1) Identify the segregation of duties problems in the system. 2) What sorts of fraud may result from the above control problem(s)?
A Forman of a construction company is responsible for a construction crew comprised of many unskilled workers. The work is hard, and the employee turnover rate is high with individuals often leaving without notice. Throughout the workweek, employees record their attendance on separate time cards, which the foreman approves and submits to the payroll department at the end of the week. Based on the time cards, the payroll department prepares the paychecks and sends them to the foreman who then distributes the checks to his work crew. 1) Identify the segregation of duties problems in the system. 2) What sorts of fraud may result from the above control problem(s)?
Chapter2: Computing Wages And Salaries
Section: Chapter Questions
Problem 4QD
Related questions
Question
A Forman of a construction company is responsible for a construction crew comprised of many unskilled workers. The work is hard, and the employee turnover rate is high with individuals often leaving without notice. Throughout the workweek, employees record their attendance on separate time cards, which the foreman approves and submits to the payroll department at the end of the week. Based on the time cards, the payroll department prepares the paychecks and sends them to the foreman who then distributes the checks to his work crew.
1) Identify the segregation of duties problems in the system.
2) What sorts of fraud may result from the above control problem(s)?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,