The internal auditing department was told that two employees were terminated for falsifying their time records. The two employees had altered overtime hours on their time cards after their supervisors had approved the hours actually worked. Several years ago, the company discontinued the use of time clocks. Since then, the plant supervisors have been responsible for manually posting the time cards and approving the hours for which their employees should be paid. The postings are usually entered in pencil by the supervisors or their secretaries. After the postings for the week are complete, the time cards are approved and placed in the mail racks outside the supervisors’ offices for pickup by the time-keepers. Sometimes the timekeepers do not pick up the time cards promptly.

Assuming the company does not wish to return to using time clocks, give three recommendations to prevent recurrence of the situation described. For each recommendation, indicate how it will deter fraudulent reporting of hours worked.

  • CreatedFebruary 26, 2015
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