1. The aim of this assessment is to work individually to evaluate the internal control and fraud risk in the payroll process of an agricultural company. Scenario: You are the newly appointed assistant farm manager in the Mulgoviey Story Cut Farming Company. The farm manager is not satisfied with the existing payroll process of the company and he has requested you to assess the existing payroll process of the company and prepare a report stating your recommendations to avoid internal control weaknesses of the payroll process of the Mulgoviey Story Cut Farming Company Mulgoviey Story Cut Farming Company is Australia's leading farming icon. They set the benchmark for best practice farming and the consistent supply of high quality fresh produce all year round, Mulgoviey Story Cut employs about 150 roduction workers and has the following payroll procedures: The farm supervisor interviews applicants an basis of the interview either hires or rejects them. When applicants are hired, Visor prepares an employee appointment form. The supervisor writes the te of pay for the new employee in the corner of the form and then gives the form roll clerk as notice that the worker has been employed. The supervisor verbally advises the payroll department of rate adjustments A supply of blank time cards is kept in a box near the entrance to the office of the farm. Each worker takes a time card on Monday morning, fills in his or her name and notes in pencil daily arrival and departure times. At the end of the week, the workers drop the time cards in a box near the door to the office of the farm. III. On Monday morning, the completed time cards are taken from the box by a payroll clerk. One of the payroll clerks then records the payroll transactions using a computer system, which records all information for the payroll journal that was calculated by the clerk and automatically updates the employee's earnings records and general ledger. Employees are automatically removed from the payroll when they fail to turn in a time card. IV. The payroll cheques are manually signed by the chief accountant and given to the supervisor. The supervisor distributes the cheques to the workers in the factor and arranges for the delivery of the cheques to the workers who are absent. The payroll bank account is reconciled by the chief accountant, who also prepares the various quarterly and annual payroll reports. II. In your assignment you will a) Review the internal control environment b) Identify weaknesses of the internal controls c) Discuss fraud risk factors that are likely to result from the weaknesses in the internal control. The supervisor di arranges for the delivery of bank account is reconciled b quarterly and annual payroll tant and given to the tes the cheques to the workers in the factor and ques to the workers who are absent. The payroll hief accountant, who also prepares the various In your assignment you will a) Review the internal control environment b) Identify weaknesses of the internal controls c) Discuss fraud risk factors that are likely to result from the weaknesses in the internal control. d) Make recommendations in order to establish a strong internal control system for the payroll process of Mulgoviey Story Cut Farming Company