John Listro is the loading dock supervisor for a dry cement packaging company. His work crew is composed of unskilled workers who load large transport trucks with large bags of cement. The work is hard, and the employee turnover rate is high. Employees record their attendance on separate time cards. Listro authorizes payroll payments each week by signing the time cards and submitting them to the payroll department. Payroll then prepares the paychecks and gives them to Listro, who distributes them to his work crew. Required:

a. Identify any control problems in the system. 12%

b. What sorts of fraud are possible in the system. 13%