TASK $1$

You disagree with the CFOs position on the accounting for the non$-$facilitators payroll

expenses. However, you cannot request that the amounts be corrected unless you are

able to substantiate that the treatment is incorrect. You are required to:

a$)$ Discuss, with reference to the Income Tax Act and Tax Administration Act,

whether the five non$-$facilitator employees must be registered as taxpayers.

b$)$ Recommend to the CFO how the treatment of the employees' salaries should

be corrected in the financial and non$-$financial records of LearnCo.

TASK $2$

The CFO has requested that you review the payroll system that has been outlined

above. You are required to analyse and explain the possible internal control

weaknesses in the payroll system. Propose recommendations in the form of internal

controls, including application controls, to improve the payroll system.

Limit your solution to the information presented