Construction company headquarted in terre haute indiana

Reference no: EM13599340

Construction Company, headquarted in Terre Haute, Indiana, built a Rest Easy Motel 35 miles east of Terre Haute. The construction foreman, whose name was Monty, hired the 40 workers needed to complete the project. Monty had the construction workers fill out the necessary tax forms. and he sent the employment documents to the home office, which opened a payroll file for each employee.

Work on the motel began on April 1 and ended Sept 1. Each week, Montey filled out a time card of the hours worked by each employee during the week. Monty faxed the time sheets to the home office. which prepared the payroll checks on Friday morning. Monty drove to the home office after lunch on Friday, picked up the payroll checks, and returned to the construction site. At 5 pm on Friday, Monty distributed the payroll checks to the workers.

a. Describe in detail the main internal control weakness in this situation. Specify what negative results could occur because of the internal control weakness.

b. Describe what you would do to correct the internal control weakness.

Reference no: EM13599340

Questions Cloud

On january 1 of year 1 arthur and aretha franklin purchased : on january 1 of year 1 arthur and aretha franklin purchased a home for 1.40 million by paying 230000 down and borrowing

Emerson ventures is considering purchasing a new line of : emerson ventures is considering purchasing a new line of hang gliders. the company estimates that variable costs will

The preferred stock was issued for land having a fair value : jude corporation has been authorized to issue 20000 shares of 100 par value 10 noncumulative preferred stock and

Austin company uses a job order cost accounting system the : austin company uses a job order cost accounting system. the companys executives estimated that direct labor would be

Construction company headquarted in terre haute indiana : construction company headquarted in terre haute indiana built a rest easy motel 35 miles east of terre haute. the

Sue the corporate controller has thus far been impressed : based on the information below please help me answer the following questions 1. provide at least 3 possible non-value

Roverplus a pet product superstore is considering pricing a : roverplus a pet product superstore is considering pricing a new roverplus labeled dog food. the company will buy the

A companys beginning work in process inventory consisted of : a companys beginning work in process inventory consisted of 20000 units that were 15 complete with respect to direct

A company uses the weighted average method for inventory : a company uses the weighted average method for inventory costing. during a period department a finished and transferred

User Account

All Pages