Accounting Information Systems
10th Edition
ISBN: 9781337619202
Author: Hall, James A.
Publisher: Cengage Learning,
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 16P
a.
To determine
Prepare a system flow chart of the procedures described.
b.
To determine
Identify control problems in the system.
c.
To determine
Identify potential frauds in the system.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
A Forman of a construction company is responsible for a construction crew comprised of many unskilled workers. The work is hard, and employee turnover rate is high with individuals often leaving 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
Identify the segregation of duties problems in the system.
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 employee turnover rate is high with individuals often leaving 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.
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)?
Chapter 3 Solutions
Accounting Information Systems
Ch. 3 - What is ethics?Ch. 3 - Prob. 2RQCh. 3 - Prob. 3RQCh. 3 - Prob. 4RQCh. 3 - What are the three ethical principles that may...Ch. 3 - What is computer ethics?Ch. 3 - Prob. 7RQCh. 3 - Prob. 8RQCh. 3 - What are the computer ethical issues regarding...Ch. 3 - What are the computer ethical issues regarding...
Ch. 3 - What are the computer ethical issues regarding...Ch. 3 - Prob. 12RQCh. 3 - What are the computer ethical issues regarding the...Ch. 3 - Prob. 14RQCh. 3 - Prob. 15RQCh. 3 - What are the computer ethical issues regarding...Ch. 3 - Prob. 17RQCh. 3 - Prob. 18RQCh. 3 - Name the three fraud-motivating forces.Ch. 3 - Prob. 20RQCh. 3 - Prob. 21RQCh. 3 - Prob. 22RQCh. 3 - Prob. 23RQCh. 3 - What is lapping?Ch. 3 - Prob. 25RQCh. 3 - What is bribery?Ch. 3 - What is economic extortion?Ch. 3 - Prob. 28RQCh. 3 - Define check tampering.Ch. 3 - What is billing (or vendor) fraud?Ch. 3 - Prob. 31RQCh. 3 - Prob. 32RQCh. 3 - Prob. 33RQCh. 3 - Prob. 34RQCh. 3 - Prob. 35RQCh. 3 - Prob. 36RQCh. 3 - Prob. 37RQCh. 3 - Prob. 38RQCh. 3 - Prob. 39RQCh. 3 - Prob. 40RQCh. 3 - Prob. 41RQCh. 3 - Give one example of an error that a check digit...Ch. 3 - Prob. 43RQCh. 3 - Prob. 44RQCh. 3 - What is the objective of a transaction log?Ch. 3 - Prob. 46RQCh. 3 - Prob. 47RQCh. 3 - Prob. 48RQCh. 3 - Prob. 49RQCh. 3 - Prob. 50RQCh. 3 - Distinguish between ethical issues and legal...Ch. 3 - Prob. 2DQCh. 3 - Prob. 3DQCh. 3 - Prob. 4DQCh. 3 - Prob. 5DQCh. 3 - The estimates of losses annually resulting from...Ch. 3 - Prob. 7DQCh. 3 - Prob. 8DQCh. 3 - Prob. 9DQCh. 3 - Prob. 10DQCh. 3 - Prob. 11DQCh. 3 - Prob. 12DQCh. 3 - Prob. 13DQCh. 3 - Prob. 14DQCh. 3 - Distinguish between exposure and risk.Ch. 3 - Prob. 16DQCh. 3 - Prob. 17DQCh. 3 - Prob. 18DQCh. 3 - Prob. 19DQCh. 3 - Prob. 20DQCh. 3 - Prob. 21DQCh. 3 - Prob. 22DQCh. 3 - Prob. 23DQCh. 3 - Prob. 24DQCh. 3 - Prob. 25DQCh. 3 - Prob. 26DQCh. 3 - Prob. 27DQCh. 3 - Prob. 28DQCh. 3 - Explain the problems associated with inappropriate...Ch. 3 - Prob. 30DQCh. 3 - Prob. 31DQCh. 3 - Prob. 32DQCh. 3 - Prob. 33DQCh. 3 - Prob. 34DQCh. 3 - Prob. 35DQCh. 3 - Prob. 36DQCh. 3 - Prob. 37DQCh. 3 - Prob. 1MCQCh. 3 - Prob. 2MCQCh. 3 - Prob. 3MCQCh. 3 - Prob. 4MCQCh. 3 - Prob. 5MCQCh. 3 - Prob. 6MCQCh. 3 - Prob. 7MCQCh. 3 - Prob. 8MCQCh. 3 - Prob. 10MCQCh. 3 - Prob. 12MCQCh. 3 - Which of the following controls would best prevent...Ch. 3 - Prob. 14MCQCh. 3 - Prob. 15MCQCh. 3 - Prob. 16MCQCh. 3 - The fraud scheme that is similar to the concept of...Ch. 3 - Prob. 18MCQCh. 3 - Prob. 19MCQCh. 3 - FRAUD SCHEME - HEALTH INSPECTOR A city health...Ch. 3 - FRAUD SCHEME PURCHASING AGENT A purchasing agent...Ch. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - EXPENSE ACCOUNT FRAUD While auditing the financial...Ch. 3 - Prob. 6PCh. 3 - Prob. 7PCh. 3 - Prob. 8PCh. 3 - Prob. 9PCh. 3 - Prob. 10PCh. 3 - Prob. 11PCh. 3 - Prob. 12PCh. 3 - Prob. 13PCh. 3 - Prob. 14PCh. 3 - Prob. 15PCh. 3 - Prob. 16PCh. 3 - Prob. 17PCh. 3 - Prob. 18PCh. 3 - Prob. 19PCh. 3 - Prob. 20P
Knowledge Booster
Similar questions
- 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.arrow_forwardA 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) What sorts of fraud may result from the above control problem(s)?arrow_forwardAutomated Application Controls. The following provides a brief description of the computerized payroll system used by Merriman in its biweekly processing of payroll for its employees.1. Employees automatically record their attendance (hours worked) as they log in at thebeginning and end of the workday.2. At the end of each payroll period (every two weeks), employees print and authorizetheir attendance records, submitting them to their supervisor. The computer prenumbersthese attendance records and generates them in chronological order based on when theemployee submits his or her final attendance for that payroll period.3. Supervisors review the attendance records submitted by their employees and authorizethese records, which the supervisors then forward to data entry conversion operators.4. Data conversion operators input the attendance record number, employee number, andhours worked from the attendance records that have been approved by the employeesupervisors into a file to be used…arrow_forward
- Matt Demko is the loading dock supervisor for a dry cement packaging company. His work crew is composed of unskilled workers who load large transport trucks with bags of cement, gravel, and sand. The work is hard, and the employee turnover rate is high. Employees record their attendance on separate time cards. Demko authorizes payroll payments each week by signing the time cards and submitting them to the payroll department. Payroll then prepares the paychecks and gives them to Demko, who distributes them to his work crew. 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?arrow_forwardUsing this supplemental information, analyze the flowchart in the diagram. The personnel department determines the wage rate of all employees. To start the process, personnel sends the payroll coordinator, George Jones, an authorization form in order to add an employee to the payroll. After Jones enters this information into the system, the computer automatically determines the overtime and shift differential rates for the individual, updating the payroll master files. Employees use a time clock to record the hours worked. Every Monday morning, George Jones collects the previous week’s time cards and begins the computerized processing of payroll information to produce paychecks the following Friday. Jones then reviews the time cards to ensure that the hours worked are correctly totaled; the system determines overtime and/or any shift differential. Jones performs all other processes displayed on the flowchart. The system automatically assigns a sequential number to each payroll check…arrow_forwardDave’s Scooters is a small manufacturer of specialty scooters. The company employs 14 production workers and four administrative persons. The following procedures are used to process the company’s weekly payroll:a. Whenever an employee receives a pay raise, the supervisor must fill out a wage adjustment form, which is signed by the company president. This form is used to change the employee’s wage rate in the payroll system.b. All employees are required to record their hours worked by clocking in and out on a time clock. Employees must clock out for lunch break. Due to congestion around the time clock area at lunch time, management has not objected to having one employee clock in and out for an entire department.c. Whenever a salaried employee is terminated, Personnel authorizes Payroll to remove the employee from the payroll system. However, this procedure is not required when an hourly worker is fired. Hourly employees only receive a paycheck if their time cards show hours worked.…arrow_forward
- Automated Application Controls: Input Controls. In its automated processing systemover payroll transactions, Brady Company enters the following data from its employees’attendance records (# corresponds to a numeric field; A corresponds to an alphabetic field):∙ Employee number (##-#-##, the employees’ Social Security number).∙ Entity division (AA#, an alphanumeric field containing two letters corresponding to thelocation of the employee and two numbers corresponding to that employees’ supervisor).∙ Hours worked (##.#, a weekly total of hours worked in 0.25-hour increments).After data entry, these data are processed against the information maintained in thatemployee’s master file record. The records are accessed based on employee number. If theemployee is an hourly employee, the number of hours worked is multiplied by the pay rate; ifa salaried employee, the hours worked are checked against a range of acceptable hours. Afterthe gross pay is determined, information in the master file…arrow_forwardEvery 2 weeks, employees for a manufacturing firm submit their time cards to the supervisor, who reviews and approves them. They are the submitted to the payroll department. At that time, the human resources clerk also submits a personnel action to the payroll clerk. The payroll clerk enters the information from these source documents into the employee records and then adds the employee hours to a payroll register reflecting employee pay rates, deductions, and job classification. One copy of the payroll register, along with the time cards, is filed in the payroll department, and one copy is sent to the AP department.Next the payroll clerk sends the employee paychecks to the cash disbursements department. The checks are signed and distributed to the employees by the paymaster. The AP department prepares a cash disbursements voucher. A copy of the voucher and a copy of the payroll register are sent to the cash disbursements department and are then posted to the general ledger. The cash…arrow_forward7. REA MODEL—CRYOGENICS’ PAYROLL SYSTEM Based on the general information about Cryogenics Inc., in Problem 6, the following describes the com- pany’s payroll procedures for the Tulsa OK, operations. Twice each month Cryogenics’ employees submit their time cards to their respective supervisor, who reviews, approves, and submits them to the payroll department. At that time, the human resources clerk also submits a personnel action form to the payroll clerk. The payroll clerk enters the information from these source documents into the employee records and then adds the employee hours to a payroll regis- ter reflecting employee pay rates, deductions, and job classification. One copy of the payroll register, along with the time cards, is filed in the payroll department, and one copy is sent to the AP depart- ment. Next, the payroll clerk prepares the employee paychecks and the payroll register and sends them to the cash disbursements department. The cash disbursement clerk signs the checks…arrow_forward
- Florenzo Corp. is a small manufacturing firm with 60 employees in seven departments. When the need arises for new workers in the plant, the departmental manager interviews applicants and hires on the basis of those interviews. The manager has each new employee complete a withholding form. The manager then writes the rate of pay on the W‐4 and forwards it to payroll. When workers arrive for their shift, they pull their time cards from a holder near the door and keep the time card with them during the day to complete the start and end times of their work day. On Friday, the time cards are removed from the holder and taken to payroll by any employee who is not busy that morning. If there were any pay rate changes for the payroll period due to raises or promotions, the manager calls the payroll department to inform payroll of these rate changes. Using the rate changes and the time cards, the payroll department prepares the checks from the regular bank account of Florenzo Corp. The manager…arrow_forwardEmployees at the Sagerod Manufacturing Company record their hours worked on paper time cards that are inserted into a time clock machine at the beginning and end of each shift. On Fridays, the supervisor collects the time cards, reviews and signs them, and sends them to the payroll clerk. The clerk calculates the pay for each employee and updates the employee earnings file. This involves adding a new record for each employee in the pay period that reflects the employee’s gross pay, tax deductions, and other withholdings for the period. The clerk then prepares a paycheck for each employee and records them in the check register. The check register and corresponding paychecks reflect each employee’s net earnings for the period. Based on these records, the clerk prepares a payroll summary, which is sent with the paychecks to the cash disbursements clerk. The clerk reviews the payroll summary, updates the cash disbursements journal to record the total payroll, and prepares a check for the…arrow_forwardAn important reconciliation in the payroll system is whena. the general ledger department compares the labor distribution summary from cost accounting to the disbursement voucher from accounts payable.b. the personnel department compares the number of employees authorized to receive a pay check to the number of paychecks prepared.c. the production department compares the number of hours reported on job tickets to the number of hours reported on time cards.d. the payroll department compares the labor distribution summary to the hours reported on time cards.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,Pkg Acc Infor Systems MS VISIO CDFinanceISBN:9781133935940Author:Ulric J. GelinasPublisher:CENGAGE L
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Pkg Acc Infor Systems MS VISIO CD
Finance
ISBN:9781133935940
Author:Ulric J. Gelinas
Publisher:CENGAGE L