Case 1. SureBuilt Homes is a construction company in Fond du Lac, Wisconsin. The owner and manager. Art Waverly, oversees all company operations. He employs 15 work crews, each made up of six to ten members. Construction supervisors, who report directly to Waverly. lead the crews. Most supervisors are longtime employees, so Waverly trusts them. Waverly's office staff consists of an accountant and an office manager. Because employee turnover is high in the construction industry, supervisors hire and fire their own crew members. Supervisors notify the office of all personnel changes. Also, super- visors forward to the office the employee W-4 forms, which the crew members fill out. Each Thursday, the supervisors submit weekly time sheets for their crews, and the accountant pre- pares the payroll. At noon on Friday, the supervisors come to the office to get paychecks for distribution to the workers at 5 p.m. SureBuilt's accountant prepares the payroll, including the payroll checks, which are writ- ten on a single payroll bank account. Waverly signs all payroll checks after matching the employee name to the time sheets submitted by the foremen. Often the workers wait several days to cash their paychecks. To verify that each construction worker is a bona fide employee. the accountant matches the employee's endorsement signature on the back of the canceled payroll check with the signature on that employee's W-4 form. Required 1. Identify one efficiency weakness in SureBuilt's payroll accounting system. How can the business correct this weakness? 2. Identify one way that a supervisor can defraud SureBuilt Homes under the present sys- tem. 3. Discuss a control feature that SureBuilt Homes can use to safeguard against the frauds you identified in requirement 2.