Mermaid Beach Hotel Ltd (Mermaid Hotel) operates a seaside hotel on the Sunshine Coast, providing<\/p>
accommodation, bar and restaurant facilities for tourists. Casual and part-time wages are a major<\/p>
expense item, particularly during summer, when up to an additional 30 staff members are employed.<\/p>
In order to keep track of casual and part-time wages, Mermaid Hotel's operations manager prepares<\/p>
a weekly roster (using Excel) showing:<\/p>
<\/p>
<\/p>
employee name<\/p>
employment position (e.g. bar staff)<\/p>
days and hours rostered for the week<\/p>
hourly rate<\/p>
any additional amounts to be paid (e.g. meal allowances).<\/p>
<\/p>
<\/p>
Each employee's immediate supervisor is required to sign a hard copy of the Excel roster spreadsheet<\/p>
on a daily basis as evidence that the hours were worked as rostered. Any discrepancies (e.g. additional<\/p>
hours) are recorded on a separate payroll adjustment form (PAF) and co-signed by the employee. The<\/p>
Excel roster spreadsheet plus any PAFs are forwarded to the payroll officer at the end of the week and<\/p>
used as the basis for that week's casual and part-time employee payroll. Last year, you still placed<\/p>
reliance on controls over casual and part-time wages, despite finding some breakdowns in controls,<\/p>
as you were able to obtain sufficient appropriate audit evidence that the controls were operating<\/p>
effectively. Assume that you have decided it is appropriate to test internal controls over the relevant<\/p>
payroll transactions.<\/p>
<\/p>
<\/p>
Required:<\/p>
<\/p>
Briefly outline how the information provided above would affect the nature, timing and extent of tests of controls.<\/p>", "transcribed_text": "", "related_book": { "title": "Auditing Cases An Active Learning Approach", "isbn": "0130674842, 978-0130674845", "edition": "2nd Edition", "authors": "Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/64ed8a8041add_6938.jpg", "uri": "\/textbooks\/abnormal-psychology-clinical-perspectives-on-psychological-disorders-1st-edition-9781266566899", "see_more_uri": "" }, "free_related_book": { "isbn": "B0CR45XL2X", "uri": "\/textbooks\/sinhas-handbook-of-fanuc-cnc-lathe-programming-tooling-and-operation-1st-edition-979-8867151997-300069", "name": "Sinhas Handbook Of Fanuc Cnc Lathe Programming Tooling And Operation", "edition": "1st Edition" }, "question_posted": "2024-06-28 08:41:35", "see_more_questions_link": "\/study-help\/questions\/business-economics-2023-September-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/former-enron-chief-financial-officer-andrew-fastow-in-his-testimony", "description": "Former Enron Chief Financial Officer Andrew Fastow, in his testimony against his former bosses at their criminal trial for fraud, said, I thought I was being a hero for Enron. 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