Early in your audit of Kimberly Corporation, you note that the factory supervisor approves time records for hours worked and hourly rates and also distributes the payroll checks.

Required:

1. Design compensating controls you would pursue before concluding that an internal control deficiency exists.

2. If you find no compensating controls for the factory payroll, what audit procedures would test for errors or frauds?

Answer rating: 100% (QA)

1 Compensating controls that could be pursued before concluding that an internal control deficiency exists include Implementing a system of dual contr... View the full answer