This case is based on an actual situation experienced by one of the authors. Augusta Construction, headquartered in Topeka, Kansas, built a motel in Kansas City. The construction foreman, Pete Garcia, hired the workers for the project. Garcia had his workers fill out the necessary tax forms and sent the employment documents to the home office.

Work on the motel began on May 1 and ended in December. Each Thursday evening, Garcia filled out a time card that listed the hours worked by each employee during the five-day work week that ended at 5 p.m. on Thursday. Garcia faxed the time sheets to the home office, which prepared the payroll checks on Friday morning. Garcia drove to the home office after lunch on Friday, picked up the payroll checks, and returned to the construction site. At 5 p.m. on Friday, Garcia distributed the paychecks to the workers.

a. Describe in detail the internal control weakness in this situation. Specify what negative result could occur because of the internal control weakness.

b. Describe what you would do to correct the weakness.