The Golf Club Company Makes Custom Golf Clubs

question 86

Essay

The Golf Club Company makes custom golf clubs.The manufacturing supervisor interviews people who have specialized manufacturing skills,and then informs payroll when an employee is hired.The employees use a time clock to record the hours they work.The employees are also required to keep a record of the time they spend working on each order.The supervisor approves all time cards.
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The accountant analyzes the job tickets and prepares a labor distribution summary.Payroll prepares the payroll register and paychecks.The supervisor distributes the paychecks to the employees.Payroll informs cash disbursement of the funds required to cover the entire payroll amount.The cash disbursements clerk ensures that there are adequate funds in the company's regular checking account to cover the payroll.
Describe at least three internal control weaknesses; for each weakness suggest an improvement to internal control.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, often reported as a non-operating expense on the income statement.