In connection with an audit of the financial statements of Olympia Company, the auditors are reviewing procedures for accumulating direct labor-hours. They learn that all production is by job order and that all employees are paid hourly wages, with time and a half for overtime hours.
Olympia€™s direct labor-hour input process for payroll and job-cost determination is summarized in the flowchart that is illustrated next. Steps A and C are performed in timekeeping, step B in the factory operating departments, step D in payroll audit and control, step E in data input, and step F in computer operations.
For each input processing step A through F:
a. List the possible errors or discrepancies that may occur.
b. Cite the corresponding control that should be in effect for each error or discrepancy.
Organize your answer for each input-processing step asfollows:

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Step Possible Misstatements or Discrepancies Control (AICPA, adapted) Time Cards Job Tickets Job Ticket Card File Payroll-Hour Computer Summary Labor-Hour Computer Summay