The Kowal Manufacturing Company employs about $50$ production workers and has the following payroll procedures.

$($i$)($Click the icon to view the payroll procedures.$)$

Requirements

a$.$ List the most important weaknesses in their processes and state the misstatements that are likely to result from the weakness.

b$.$ For each weakness that increases the likelihood of fraud, identify whether the likely fraud is misappropriation of assets or fraudulent financial reporting.

this weakness in the "Misappropriation of assets or Fraudulent financial reporting" column.$)$

$($Click the icon to view weakness selections.$)$

Misappropriation of assets

or fraudulent financial

Weaknesses

Likely misstatements

reporting