A CPA's audit documentation contains a narrative description of a segment of the Crayden Factory, Inc., payroll system and an accompanying flowchart as follows:
€¢ The internal control structure of the personnel department functions well and is not included in the accompanying flowchart.
€¢ At the beginning of each workweek, payroll clerk 1 reviews the payroll department files to determine the employment status of factory employees, and then prepares time cards and distributes them as each employee arrives at work. This payroll clerk, who is also responsible for custody of the signature stamp machine, verifies the identity of each payee before delivering signed checks to the supervisor.
€¢ At the end of each work week, the supervisor distributes payroll checks for the preceding workweek. Concurrent with this activity, the supervisor reviews the current week's employee time cards, notes the regular and overtime hours on a summary form, and initials the time cards. The supervisor then delivers all time cards and unclaimed payroll checks to payroll clerk 2.

Required
a. Based on the narrative and accompanying flowchart, what are the weaknesses in internal controls?
b. Based on the narrative and accompanying flowchart, what inquiries should be made in order to identify the existence of possible additional deficiencies in internalcontrols?

PROBLEM 6.57 Crayden Factory, Inc. Payroll Processing Factory Payro Cierk no. 2 no. 1 Clock cards Regular and overtine hrs clock cards Fille status, wage Clock cards Ciock cards and buthorized clock cards Gross and net Time clock Tme clock and out and out Clock cards submitted for Clock cards Clock cards totals cro88 Clock cards Gross pay, net Regular and Dellvered to and numerical Payroll checks payroll clerk no. 2 of Peyroll checks to factory