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CH 6 Evaluate Internal Control Weaknesses

This document evaluates internal control weaknesses in payroll processing and fixed assets. For payroll processing, it identifies a lack of segregation of duties, supervision of timecards, accounting for cash disbursements, access controls over payroll checks, and independent verification of payroll payments. For fixed assets, it notes accounting records are not shared between departments for tracking asset changes. Suggestions are provided to address each weakness.

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ratu shavira
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159 views1 page

CH 6 Evaluate Internal Control Weaknesses

This document evaluates internal control weaknesses in payroll processing and fixed assets. For payroll processing, it identifies a lack of segregation of duties, supervision of timecards, accounting for cash disbursements, access controls over payroll checks, and independent verification of payroll payments. For fixed assets, it notes accounting records are not shared between departments for tracking asset changes. Suggestions are provided to address each weakness.

Uploaded by

ratu shavira
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Evaluate Internal Control Weaknesses

A. Payroll Processing

NO Element Weakness Suggestion


1 Segregation of duties - There is no time-keeping - Need time-keeping to
function avoid the dishonesty of
time in the time card
2 Supervision - There is no a supervision - Need time-keeping to
who control employee control the employee’s
time card, not directly
giving the time card to
the manager by
employee its self
3. Accounting record - There’s no an outflow - Each cash out flow need
voucher recorded by cash to be record to know the
disbursement department amount of cash that are
paid for payroll
4. Access control - There is no access control - Need an access control
in payroll check from paymaster to avoid
the manipulation of
check by dishonest clerk
in payroll department
5. Independent verification - There is no paymaster to - Need paymaster to make
make the check check distribution and
distribution and verification become well
verification become bad. to avoid issued the
check for the employee
who is not work
anymore.

B. Fixed Asset

NO Element Weaknesses Suggestion


1 Accounting record - Account payable didn’t - The FA change report
get the copy of FA should be send to AP
change report dept to avoid the loss of
audit track

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