Shafinaz running a medium-sized 24 hours petrol station kiosk at Johor Bahru, Johor. The petrol station has six pump attendants cum general workers, a cashier and accounts clerk. The employees record their attendance using a punch card which they manually write their name, time and month of work. Each employee is required to keep their own punch card and submit it to the accounts clerk, at the end of every month. Any overtime payment will be verbally authorize by Shafinaz with flat-rate RM3.50 per hour. No other record is maintained as the owner is satisfied with the comprehensive information stated in the payroll master schedule. Cashier or account clerk would prepare a cheque based on the amount in the payroll master schedule and hand over the cheques to Syafinaz for her signature. The cheques are then distributed to the employees by cashier. a. Evaluate any FIVE (5) weaknesses in the above internal control system.
Shafinaz running a medium-sized 24 hours petrol station kiosk at Johor Bahru, Johor. The petrol station has six pump attendants cum general workers, a cashier and accounts clerk. The employees record their attendance using a punch card which they manually write their name, time and month of work. Each employee is required to keep their own punch card and submit it to the accounts clerk, at the end of every month. Any overtime payment will be verbally authorize by Shafinaz with flat-rate RM3.50 per hour. No other record is maintained as the owner is satisfied with the comprehensive information stated in the payroll master schedule. Cashier or account clerk would prepare a cheque based on the amount in the payroll master schedule and hand over the cheques to Syafinaz for her signature. The cheques are then distributed to the employees by cashier.
a. Evaluate any FIVE (5) weaknesses in the above internal
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