Overtime and Comments Working Paper

2914 WordsDec 18, 200812 Pages
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…show more content…
Weakness of independent internal verification. According to case, when all necessary input has been completed, Mr. Blake e-mails the PRF to Miss Knag for her to use to print the payroll cheques without any checking. The risk is the company may pay incorrect amount to employees, because the processing errors may occur in record of payroll. Weakness of independent internal verification. According to case, Miss knag voids the uncollected cheques with out comparison the data from Uncollected Cheques Resister. The risk is someone can steal the payroll cheque on the way of sending uncollected check to Miss Knag. So, it has risk of embezzling the company’s asset from uncollected cheques Weakness of segregation of duties, According to case, Mr. Blake records the names of any employees not collecting an cheques in an Uncollected Cheques Resister and returns this cheques to Miss Knag The risk of someone should record the name of any employees not collecting cheques so that the cheques will be embezzled. The embezzling of money from uncollected cheques Weakness of authorization procedures, According to case, Miss Knag prints a payroll cheque for each employee and signs them as authorization for payments to be made. The risk is the Payment to fictitious employees and payroll cheques may be distributed to unauthorized. The payroll cheques could not be preparing. Weakness of Documentation procedures. According to case, Miss
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