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npeelman npeelman
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6 years ago
The WhirlyGig Factory Ltd. manufactures WhirlyGigs of many different sizes and types. The company employs 55 employees, all paid on an hourly basis.
Employees fill in time sheets and hand them in every Monday to the payroll clerk, Pamela. For factory employees, the time sheet shows the hours worked by product job number, and indicates if the job has been completed. The payroll clerk tracks the hours worked by job, and when a job is complete, compares the totals to the estimate made by the owner, Faruq. A bonus is paid for actual hours paid less than the estimated amount.

Every Wednesday, Pamela prepares the cheques and gives them to Faruq for signing. Pamela then staples the cheques to the payroll stubs. Pamela hands out the office cheques and gives the other cheques to the factory supervisor for distribution.

Required:

A) Identify control weaknesses and their impact, and provide recommendations for improvement.

B) What is the impact of the control weaknesses upon your audit approach?
Textbook 
Auditing: The Art and Science of Assurance Engagements, Canadian Edition

Auditing: The Art and Science of Assurance Engagements, Canadian Edition


Edition: 12th
Authors:
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charleshardtcharleshardt
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npeelman Author
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#2
5 years ago
Thanks b
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