(7 marks) Figure 4.1 below presents the payroll procedures of AAA Limited. We discussed various aspects of such payroll procedures. In the light of that discussion, identify the potential frauds possible in the payroll system of AAA Limited. Also, discuss the control techniques to avoid these frauds. [7 Marks. Word Limit: Up to 200 words]

Employee Supervisor Payroll Department Time Card Time Card Time Card Supervisor Approves and Signs Time Cards Prepare Paychecks Paycheck Paycheck Paycheck Supervisor Distributes Paychecks to Employees