224.

Broze
Control Deficiencies Control Recommenda on Test of control
Employees swipe their clock cards at The process of clocking in and Observe the clocking in and clocking
the beginning and end of the eight clocking out are reviewed by out process to ensure that responsible
hours shi and this process is not responsible official to prevent one official is reviewed by.
supervised. individual clocking in mul ple Enquire of supervisor whether the
This can lead to the number of employees. random check for employees
employees are clocking in as a present
when they are not.This is causing
increase payroll cost.
During this shi employees are Employees should be allocated to Observe the dining area during a
en tled to a 30 min paid break and set a break and there should be a break me to ensure that supervisor is
employees do not need to clock out to supervisor is present to ensure present.
assess the dining area. that employees take a break they
There is a risk that employee taking an are en tled.
excessive break and this can decrease
of produc vity and increase payroll.
Although there is a HR department, All of the staff including Inspect the HR procedure manual to
appointment of temporary staffs are temporary, permanent should be ensure that appointment of staff is the
made by produc on supervisor. appointed by HR department. responsibility of HR department.
The supervisor could appoint
unsuitable employee and may not
carried out all the required procedure
for new joiner.
This may be the new employee did not
received the correct net pay and
relevant deduc on causing
dissa sfac on of employees.
Over me reports which detail of the All over me should be authorized Inspect the over me report for
amount of over me work are sent out by responsible official prior to evidence of responsible official’s
quarterly by the payroll department to payment being process by the signature, authorizing the over me
produc on supervisor for their review. payroll department. The prior to the payment being processed.
There report are reviewed a er the authoriza on is should be
payment have been made. evidence in wri ng.
There would result in unauthorized
over me or amount being paid
incorrectly and payroll cost increasing.
The produc on supervisor determine The bonus should be determine Inspect the communica on of bonus
the discre onary bonus paid to the by more senior individual such as to the payroll department and ensure
employees. produc on director and this could it is send by a senior official.
Supervisor is not sufficiently be communicated in wri ng to
competence to determine the bonus. payroll department.
They could pay extra bonus to friend
or family causing increase the payroll
cost.
The bonus is input by a clerk. There is
no indica on that this input process is
review.
This could result in input error or
fraudulently changes the amount.
This could lead to incorrect bonus
payment and increase payroll cost.
A payroll clerk distributes the cash pay
packet to employees without
reques ng proof of iden ty.
Even though she knows most of these
individual,there is a risk that without
iden ty check, wages could be paid to
incorrect employees and causing
employee dissa sfac on.
Once the clerk inpu ng the
amount all entries should be
double check against with wri en
confirma on from the produc on
director and another member of
the team should check the entries
to iden fy any amount is entered
incorrectly.
The payroll clerk should be
informed that all cash wages can
only paid upon sight produc on
clock card and photogenic
iden fica on as confirm proof of
iden ty.
Observe the payroll clerk inpu ng the
bonus and sequence check against
with wri en confirma on from a
produc on manager by another team
member.
Observe the process of wages
collec on to ensure that employees
can only collect their wages on
produc on clock and photogenic ID.