The WhirlyGig Factory Ltd

question 51

Essay

The WhirlyGig Factory Ltd.manufactures whirly gigs 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.When a job is complete,she 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?

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Definitions:

TSE

Transmissible Spongiform Encephalopathies, a group of progressive, invariably fatal, neurological disorders related to prion diseases.

Meaning

The significance, definition, or interpretation of a word, phrase, sentence, or text.

Vacuum-assisted

A medical procedure or intervention that uses a vacuum device to assist, for example, in the delivery of a baby to manage certain complications.

Needle Biopsy Device

A medical instrument used to extract a sample of cells or tissue for examination to diagnose disease.