2. You are assessing internal control in the audit of the payroll d personnel cycle for Rogers Products Company, a manufacturing company specializing in assembling computer arts. Rogers employs approximately two hundred hourly and thirty salaried employees in three locations. Each location has one foreman who is responsible for overseeing operations. The owner of the company lives in Naples, Florida, and is not actively involved in the business. The two key executives are the vice president of sales and the controller, and both have been employed by the company for more than fifteen years. New hourly employees are hired by the foremen at each location on an as-needed basis. Each foreman recommends the wage rate for each new employee as well as wage rate increases. The effectiveness of employees re adjusted accordingly. All wage rates are approved by the controller. Since each hourly employee works independently, Rogers has a highly flexible work schedule policy, as long as they start after 7:00 a.m. and are finished by 6:00 p.m. Each foreman has a supply of prenumbered time cards that he or she distributes to employees on Monday morning. Because some employees do not start until later in the day, several time cards are kept in a box by the time clock for their use. Hourly employees use time clocks to record when they start and stop working. Each Friday after the employees complete their work for the week, the foremen account for the time cards they distributed, ap- prove varies considerably, and their wages and send them by an overnight courier to the main in Cincinnati. The payroll clerk receives the time cards on Saturday and enters the information using payroll software that prepares the che or direct deposit authorizations and the related payroll records. The checks are ready for the controller to sign Monday morning. She compares each check to the payroll transactions list sent by the payroll department and re-turns the checks using the same courier to each location. The foremen pick up the checks and distribute each check to the appropriate employee. If an employee is not present at the end of the day, the foreman mails it to the employee's address. Except for the foremen, all salaried employees work in the Cincinnati office. The vice president of sales or the controller hires all salaried employees, depending on their responsibilities, and determines their salaries and salary adjustments. The owner determines the salary of the vice president of sales and the controller. The payroll clerk also processes the payroll transactions for salaried employees using the same payroll software that is used for hourly employees, but all salaried mployees use direct deposit so no check is prepar The payroll software has access controls that are set by the controller. She is the only person who has access to the salary and wage rate module of the software. She updates the software for new wage rates and salaries and changes of existing ones. The accounting clerk has access to all other payroll modules. The controller's assistant has been taught to reconcile bank accounts and does the reconciliation monthly