An owner of a growing business hires you as a consultant. He is concerned about rising pay-
roll costs, and also concerned about payroll fraud. Currently, his payroll clerk collects time sheets and computes gross pay and deductions. The payroll clerk also adds new employees to the payroll system and makes all changes to employees’ withholdings and voluntary deductions. Once the payroll is processed, the payroll clerk signs and distributes the payroll checks.
Required
Prepare a set of written recommendations to the business owner to strengthen the owner’s control over payroll procedures. Your answer should be in a memorandum format.