PBL SESSION 4: PAYROLL CYCLE RE MO PASTA SQQdeis a small manufacturing company situated in Sa ma Jaya. It employs about 50 production workers and has the following payroll procedures: The factory supervisor interviews and hires all job applicants. The supervisor determines the hourly rate of pay for the new employee and verbally notifies to the payroll clerk that a new worker has been hired. Any subsequent pay raises will be verbally advised by the supervisor to the payroll department. A supply of blank time cards is kept in a box near the entrance to the factory. All workers take a time card on Monday morning and fill in their names. During the week they record the time they arrive and leave work by punching their time cards in the time clock located near the main entrance to the factory. At the end of the week the workers drop the time cards in a box near the exit. A payroll clerk retrieves the completed time cards from the box on Monday morning. Employees are automatically removed from the payroll master file when they fail to turn in a time card. The payroll checks are manually signed by the chief accountant and then given to the factory supervisor, who distributes them to the employees. The factory supervisor arranges for delivery of the paychecks to any employee who is absent on payday. The payroll bank account is reconciled by the chief accountant, who also prepares the various quarterly and annual tax reports. Required: b. Discuss five {5) weaknesses of controls that exist in payroll-related activities and implications associated with each of those control weaknesses. Suggest five (5) corrective actions that can be used to overcome the weaknesses. Your answers should be written in the following format. Weaknesses 8!. Implications Control Procedures {15 marks) 3. Discuss four [4] internal control procedures relevant to the human resource management and payroll cycle: {10 marks) b. Briefly describe the purpose of each of the following control procedures in the payroll cycle: i. Compare a listing of current and former employees to the payroll register. ii. Use of a fingerprint scanner by employees to record the time they started and the time they ended working each day. iii. Providing employees with earning statements every pay period. {5 marks) (TOTAL: 30 MARKS)