c) Internal control weaknesses Payroll Processing System Weaknesses 1) Transaction Authorization: does not make ID for intern employees

2) Supervision: No one monitor supervisor while writing the wage rate of intern 3) Supervision: Supervisor do not match the actual attendance and timecards 4) Segregation of duty: payroll clerk prepare both payroll checks and paychecks Risk Supervisor can record and send time cards for non-exist intern employee Payroll fraud Supervisor may change rate for favorable employee Employee may clock in for another employee Company may pay excessive amount of wages Clerk can alter the checks (paid to nonexist employee) and collaborate with employees Fraud (Theft of checks)

ACCOUNTING INFORMATION SYSTEM (MAA3013) SEMESTER I 2012/2013

Individual Assignment NAME: SITI HAJAR ANNUAR MATRIC NUMBER: 1110063 TUTORIAL GROUP: TMB 1

LECTURER: MRS NOR ASIAH YAAKUB DUE DATE: 31 Dec 2012