The Linscott Supply Company employs about 50 production workers. Based on interviews, the factory supervisor hires or rejects job applicants. New hires prepare a W-4 form (Employee's Withholding Exemption Certificate) for the supervisor, who enters an hourly pay rate in the corner of the form and then passes the form on to a payroll clerk, thereby notifying Payroll that the worker has been employed. The supervisor advises Payroll of subsequent pay rate adjustments verbally.

A supply of blank time cards is kept in a box near the factory's front door entrance.

Each worker takes a time card on Monday morning, writes in his or her name, and notes daily arrival and departure times in pencil. At the end of the week, workers drop the time cards in a box near the door. A payroll clerk collects completed time cards from the box on Monday morning. Two payroll clerks divide the cards alphabetically between them, one taking A to L, and the other M to Z. Each clerk is fully responsible for his or her portion of the payroll. The clerks compute gross pay, deductions, and net pay, post the details to each employee's earnings record, and prepare and number the payroll checks. Employees are deleted from the payroll when they fail to turn in a time card.

Payroll checks are signed manually by the chief accountant and given to the supervisor. The supervisor distributes the checks to the workers and arranges to deliver checks to workers who are absent. The payroll bank account is reconciled by the chief accountant, who also prepares quarterly and annual payroll tax returns.

Required: 

How might Linscott Supply Company improve controls over hiring and payroll?