Fundamentals of Auditing
Essay by Nishan kings • February 6, 2019 • Essay • 786 Words (4 Pages) • 571 Views
Table of Content
Description Page no
1. Identifies and explain FOUR weaknesses in that system 2
2. Explain the possible effect of each weakness 3
3. Provides a recommendation to alleviate each weakness. 3
4. Reference 5
1). Identifies and explain FOUR weaknesses in that system;
i. Weakness
During working shift hours, the employees should start work at 7.00am and either use electronic identification card or punch card. As the employees will not work without logging in, therefore, it is not monitored on the time recording system.
Effect
There is a chance of other employees to help out their colleagues by logging in on their behalf which is unethical and risky.
Recommendation
The best way is to have finger print machine. Thus, other employees in the company would not be able to help their colleagues in their absence. Somebody should be assigned to monitor the logging in and use of cctv would be useful for further monitoring
ii. Weakness
The extent of any over time working although the supervisor ensures workers is not taking unnecessary things which would automatically increase the amount.
Effect
There is a potential risk of the employees clocking out late and claiming to work overtime while their intension is earning extra through overtime
Recommendation
There should be at least more than one supervisor to monitor the employees and their actual duties in terms of overtime and make sure no excess payment goes out to them unnecessarily
iii. Weakness
Domestic card has a code word which is for the company and is only known in that particular department.
Effect
As everyone ha the access to the code word, they are able to make changes on the names and payment details which are related to wages.
Recommendation
Only one personnel should be given the authority to control the code word.
iv. Weakness
The clerk authorized and makes the payment to the employees using APPM bhd online banking system.
Effect
As the clerk is very new to the company, with insufficient experience to authorize and do any kind of payments.
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