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Test for fraud in construction company payroll records
1. How might the owner of a construction company determine whether a supervisor who distributes payroll and has authority to hire and fire employees has fictitious employees on the payroll and is cashing the related payroll checks?
2. Why is it desirable to have at least two officials approve pay rate changes?
3. Do you agree? Please explain! There are a few ways to check for this, such as checking social security numbers, having databases with employee information (and pictures) that can be checked my the owner and have a set wages budget. In the end it might be impossible to catch everything so that is why it is desirable to have two people overseeing these activities.
4.Do you agree? Please explain! Time cards would work if the company is a small one. I would just put more than one person in charge of payroll so they could watch each other, preferably one to be a major tattle-tale.
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