Identify 6 weaknesses or concerns in current procedures and activities, and explain the threats (e.g., what could happen) if the matter is not corrected.

Beth Standards Hospital Inc., which employs about 260 doctors, staff, and administrative workers have the following payroll procedures:

The hospital supervisor interviews and hires all job applicants. Job interviews are conducted via ZOOM. Once hired, the new employee prepares a W-4 form (Employee’s Withholding Exemption Certificate) and gives it to the supervisor. The supervisor writes the hourly rate of pay for the new employee on the W-4 form and then gives the form to the payroll clerk as notice that a new worker has been hired. The supervisor telephones the payroll department of any subsequent pay raises.

A supply of blank time cards is kept in a box near the entrance to the hospital. All workers take a time card on Monday morning and fill in their names. During the week they record the time they arrive and leave work by punching their time cards in the time clock located near the main entrance to the hospital. At the end of the week, the workers drop the time cards in a box near the exit of the hospital to avoid contact with the patients. Hand sanitizer is readily available.

A payroll clerk retrieves the completed time cards from the box on Tuesday morning. Employees are automatically removed from the payroll master file when they fail to turn in a time card. Unclaimed checks are returned to the department supervisor.

The payroll checks are manually signed by the chief doctor in charge of Neurology and then given to the hospital supervisor, who distributes them to the employees. The hospital supervisor arranges for delivery of the paychecks to any employee who is absent on payday.

Sometimes house visits are arranged. When doctors or nurses must reschedule, administrative staff (working from home) provide medical instruction via ZOOM. Hospital staff unhappy or unfamiliar with approved telework solutions may install their own or set up “shadow IT” for convenience and efficiency. Many staff really like this flexibility.