E5-36B. (Learning Objective 2, 4: Evaluating internal control over cash payments) Long Range Golf Company manufactures a

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E5-36B. (Learning Objective 2, 4: Evaluating internal control over cash payments) Long Range Golf Company manufactures a popular line of golf clubs. Long Range Golf employs 167 workers and keeps their employment records on time sheets that show how many hours the employee works each week. On Friday the shop foreman collects the time sheets, checks them for accuracy, and delivers them to the payroll department for preparation of paychecks. The treasurer signs the paychecks and returns the checks to the payroll department for distribution to the employees.

Identify the main internal control weakness in this situation, state how the weakness can hurt Long Range Golf, and propose a way to correct the weakness.

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Financial Accounting International Financial Reporting Standards Global Edition

ISBN: 9781292211145

11th Edition

Authors: Charles T. Horngren, C. William Thomas, Wendy M. Tietz, Themin Suwardy, Walter T. Harrison

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