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Accounting Information Systems 8th Edition by James Hall
Edition 8ISBN: 978-1111972141Accounting Information Systems 8th Edition by James Hall
Edition 8ISBN: 978-1111972141 Exercise 89
EVALUATION OF CONTROLS
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.
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?
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.
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?
Explanation
Verified
Verified
Evaluation of controls
System flowchart...
Accounting Information Systems 8th Edition by James Hall
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