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Question - Glazer Company is a small manufacturing firm with 60 employees in seven departments. When the need arises for new workers in the plant, the departmental manager interviews applicants and hires on the basis of those interviews. The manager has each new employee completes a withholding form. The manager then writes the rate of pay on the W-4 and forwards it to payroll.
When workers arrive for their shift, they pull their time cards from a holder near the door and keep the time card with them during the day to complete the start and end times of their work day. On Friday, the time cards are removed from the holder and taken to payroll by any employee who is not busy that morning. If there were any pay rate changes for the payroll period due to raises or promotions, the manager calls the payroll department to inform payroll of these rate changes.
Using the rate changes and the time cards, the payroll department prepares the checks from the regular bank account of the Glazer Company. The manager of the payroll department signs the checks, and the checks are then forwarded to each department manager for distribution to employees.
Identify internal control weaknesses in these processes and provide recommendations.
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