Amber Resources Sdn Bhd is growing company specializing in women jewelry. It currently employs 200 fulltime employees, all of whom work out of their headquarters in Serdang, Selangor. Amber Resources Sdn Bhd, supervisor collects and review employee's timecards, which they forward to the payroll department. During payroll processing, individual employee wage rates are manually pulled from the personnel file based on the employee ID. Intern staff which work for Amber Resources Sdn Bhd, however, do not received employee identification and numbers because they are at the company for only 10 weeks. In such cases, the immediate supervisor writes the wage rate on the time cards prior to submission to the payroll department. The payroll clerk then manually prepares the payroll cheques, updates the payroll register, and files the time cards in the department. She sends a copy of the payroll register to the account payable clerk who updates the accounts payable ledger for wages payable. The payroll clerk then sends a payroll summary to the general ledger. Finally the payroll clerk sends the paycheque to the cash disbursement department, where they are signed and forwarded to supervisors, who distribute them to their respective employee's. The signed copies of the payroll cheque are returned to the payroll department, where they are matched to the payroll register and filed locally. The cash disbarment clerk prepares a list of verified recipients. She sends one copy of the list to the account payable department. The accounts payable clerk uses the list to update the account payable ledger to close out the wages payable account. The cash disbursement clerk sends a second copy of the list of recipients to the general ledger clerk, who reconciles it to the summary report and post to general ledger Required: a) Prepare a Data Flow Diagram (DFD) to describe the above current process. (9 marks) b) Prepare a System Flowchart to describe the above current process. (10 marks) c) Explain any THREE (3) internal control weaknesses in the system. (6 marks) Amber Resources Sdn Bhd is growing company specializing in women jewelry. It currently employs 200 fulltime employees, all of whom work out of their headquarters in Serdang, Selangor. Amber Resources Sdn Bhd, supervisor collects and review employee's timecards, which they forward to the payroll department. During payroll processing, individual employee wage rates are manually pulled from the personnel file based on the employee ID. Intern staff which work for Amber Resources Sdn Bhd, however, do not received employee identification and numbers because they are at the company for only 10 weeks. In such cases, the immediate supervisor writes the wage rate on the time cards prior to submission to the payroll department. The payroll clerk then manually prepares the payroll cheques, updates the payroll register, and files the time cards in the department. She sends a copy of the payroll register to the account payable clerk who updates the accounts payable ledger for wages payable. The payroll clerk then sends a payroll summary to the general ledger. Finally the payroll clerk sends the paycheque to the cash disbursement department, where they are signed and forwarded to supervisors, who distribute them to their respective employee's. The signed copies of the payroll cheque are returned to the payroll department, where they are matched to the payroll register and filed locally. The cash disbarment clerk prepares a list of verified recipients. She sends one copy of the list to the account payable department. The accounts payable clerk uses the list to update the account payable ledger to close out the wages payable account. The cash disbursement clerk sends a second copy of the list of recipients to the general ledger clerk, who reconciles it to the summary report and post to general ledger Required: a) Prepare a Data Flow Diagram (DFD) to describe the above current process. (9 marks) b) Prepare a System Flowchart to describe the above current process. (10 marks) c) Explain any THREE (3) internal control weaknesses in the system. (6 marks)
