Decision Case 7-1 Conduct an Internet search for information on internal control and the Sarbanes- Oxley Act. Write a report of your findings. In your report, discuss some of the advantages and disadvantages of the Sarbanes-Oxley Act. Present it to your class (if required by your instructor). Decision Case 7-2 This case is based on an actual situation. Centennial Construction Company, head- quartered in Dallas, Texas, built a Rodeway Motel 35 miles north of Dallas. The construction foreman, whose name was Slim Chance, hired the 40 workers needed to complete the project. Slim had the construction workers fill out the necessary tax forms, and he sent their documents to the home office. Work on the motel began on April 1 and ended September 1. Each week, Slim filled out a time card of hours worked by each employee during the week. Slim faxed the time cards to the home office, which prepared the payroll checks on Friday me office on Friday, picked up the payroll checks, and morning, Slim drove to the ho returned to the construction site. At 5 p.m. on Friday, Slim to the workers. distributed payroll checks Requirements 1. Describe in detail the main internal control weakness in this situation. Speci negative result(s) could occur because of the internal control weakness. 2. Describe what you would do to correct the internal control weakness. Fraud Case 7-1 Decision Case 7-1 Conduct an Internet search for information on internal control and the Sarbanes- Oxley Act. Write a report of your findings. In your report, discuss some of the advantages and disadvantages of the Sarbanes-Oxley Act. Present it to your class (if required by your instructor). Decision Case 7-2 This case is based on an actual situation. Centennial Construction Company, head- quartered in Dallas, Texas, built a Rodeway Motel 35 miles north of Dallas. The construction foreman, whose name was Slim Chance, hired the 40 workers needed to complete the project. Slim had the construction workers fill out the necessary tax forms, and he sent their documents to the home office. Work on the motel began on April 1 and ended September 1. Each week, Slim filled out a time card of hours worked by each employee during the week. Slim faxed the time cards to the home office, which prepared the payroll checks on Friday me office on Friday, picked up the payroll checks, and morning, Slim drove to the ho returned to the construction site. At 5 p.m. on Friday, Slim to the workers. distributed payroll checks Requirements 1. Describe in detail the main internal control weakness in this situation. Speci negative result(s) could occur because of the internal control weakness. 2. Describe what you would do to correct the internal control weakness. Fraud Case 7-1