a. Create a data flow diagram of the payroll systems.

b. Create a system flowchart of the payroll systems.

c. Analyze the internal control weaknesses in the system. Model your response according to the six categories of physical control activities specified in SAS 78/COSO.

d. Make recommendations for improving the payroll procedures. Explain your solution.

Holly Company is a small family-run manufacturer of wooded garden furniture, sheds, and storage containers. The company is located outside Pittsburgh, Pennsylvania, and currently employs 185 workers. Much of the manufacturing work involves casual labor in the lumberyard and sawmill. The work is hard and employees often move on after a few months. Although the company does not issue audited financial statements, its owner has retained your firm to conduct a review of its internal controls. The focus of your review at this time is the payroll process.