auditing question

You are the auditor in charge for Boyeh Sdn. Bhd. The company is an infant goods distributors and has ten stores and a central warehouse, which holds the majority of the company's inventory. Johan and Danny take turns "punching in" for each every few days. The absent employee comes in at noon and tells his supervisor that he had transportation problem. The supervisor does not know that the employees is getting paid for the time. The supervisor submits inaccurate time card for a former employee each week and delivers the related payroll cheque to the employee's house on the way home from work. They split the amount of the payback. Employees often overlook in recording their hours worked on job-cost tickets as required by the system. Many of the client's contracts are on a cost-plus basis. Direct labour was unintentionally charged to job 610 instead of 601 by the payroll clerk when he key-entered the labour distribution sheets. Job 601 was completed and the costs were expensed in the current year, whereas job 610 was included in working-process. The payroll clerk prepares a cheque to the same non-existent person every week when he enters payroll transactions in the computer system, which also records the amount in the payroll journal. He submits it along with all other cheques for signature. When the cheques are returned to him for distribution, he takes the cheque and deposits them in a special bank account bearing that person's name. In withholding payroll taxes from employees, the computer operator deducts RM0.50 extra income taxes from several employees each week and credits the amount to his own employee earnings record. The payroll clerk manually prepares payroll cheque but often forgets to record one or two cheques in the computer-prepared payroll journal. Required: a. Assess the transaction-related audit objective in the payroll and personnel system of Boyeh Sdn. Bhd. (10 marks) b. Recommend control for each deficiencies identified above. (10 marks) c. Discuss how Boyeh Sdn is handled. Bhd. Bhd. strengthen their payroll system, which is projected to rise by 60% in employees. (10 marks)