QUESTION 3:

Sandy finally moves to the Payroll/HR Cycle. Here she encounters the following scenarios.

H. The third shift in the manufacturing plant has no timekeeper. Instead, the supervisor acts as the timekeeper, approving all timecards daily and distributing the paychecks at the end of the week. The supervisor also retains all unclaimed paychecks for employees absent on payday.

I. Supervisors interview job candidates and make verbal job offers, complete with salary to the applicant they wish to hire. Human Resources then sends out a formal letter to the applicant for confirmation. A copy of this letter is sent to Payroll for Payroll master file update.

J. Changes to employees' pay, including vacation, bonus, and raises, are entered by Payroll from data received from the Supervisor. Human Resources is notified of the changes after Payroll enters them. Employees who resign from the company inform their supervisor (or fail to show up for two weeks); the supervisor notifies payroll, then Human Resources.

Required: list the internal control threats in the above scenarios and list the internal controls that would prevent and/or detect the threat. be specific as to the nature of the control; for example, "segregation of duties" is not acceptable. you need to specify what duties need to be separate. Also, you need other controls besides segregation of duties; use this control only once. Identify the control if it is an input edit control by placing a "Y" in the input edit" column. Organize your answer as follows:

LETTERTHREAT INTERNAL CONTROLINPUT EDIT CONTROL(S) (Y/N)