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Question $3$

Your audit client FitSit Ltd is a manufacturer of fitness equipment. The company operates on one shift per day with a standard $40-$hour work week for production staff. The production staff is hourly paid. If they do not work, they are not paid; while the administrative staff is paid a flat salary which is governed by a separate process.

On arrival at work in the morning the production staff scans his or her swipe card on the time recording system which electronically captures the staff's unique ID number. Once this process is complete the staff is deemed to be at work, and are paid from the time they are clocked in$.$ Staff clock out at the end of each shift by re$-$scanning their electronic swipe card. With all staff trained on the company's code of ethics, the clocking in and out system is not monitored.

While the production staff work a standard $8-$hour day, where necessary, overtime is worked to complete orders. The shift supervisor is not required to monitor the extent of overtime worked; however, the supervisor does ensure staff do not take long breaks which would increase the amount of overtime hours captured.