You run a consulting practice and are hired by a large retailer, Bullseye Retailers, to advise on process improvements and how to increase profits. In your initial review of the company's financials, you identify that payroll costs are significantly higher than the company's competitors. You decide to investigate further and discover anomalies in the payroll system, specifically payments to terminated employees.

1. What could these anomalies indicate?

2. What recommendations would you have for the retailer?