Figure 4.1 below presents the payroll procedures of AAA Limited. We discussed various aspects of such payroll procedures. In the light of that discussion, identify the potential frauds possible in the payroll system of AAA Limited. Also, discuss the control techniques to avoid these frauds.

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Payroll Department Employee Supervisor Time Time Time Card Card Card Supervisor Approves and Signs Time Cards Prepare Paychecks Paycheck Paycheck Paycheck Supervisor Distributes Paychecks to Employees Payroll Department Employee Supervisor Time Time Time Card Card Card Supervisor Approves and Signs Time Cards Prepare Paychecks Paycheck Paycheck Paycheck Supervisor Distributes Paychecks to Employees

Answer rating: 100% (QA)

Associated risks 1 There is no independent information to record changes in an employees status 2 Si... View the full answer