The Westmont Factory Ltd. manufactures high-end mountain bicycles (MTB) of many different sizes and types. The company
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- The Westmont Factory Ltd. manufactures high-end mountain bicycles (MTB) of many different sizes and types. The company employs 55 employees, all paid on an hourly basis. Employees fill in time sheets and hand them in every Monday to the payroll clerk, Annabella. For factory employees, the timesheet shows the hours worked by product job number and indicates if the job has been completed. The payroll clerk tracks the hours worked by the job. When a job is complete, she compares the actual hour totals to the estimate made by the owner, Boris. An efficiency bonus is paid for actual hours paid lesser than the estimated hours and amount. Every Wednesday, Annabella prepares the cheques and gives them to Boris for signing. Annabella then staples the cheques to the payroll stubs. Annabella hands out the office cheques and gives the other cheques to the factory supervisor for distribution. Required (3 marks):
- A) Identify control weaknesses and their impact and provide recommendations for improvement.
- B) What is the impact of the control weaknesses on your audit approach?
Related Book For
Financial and managerial accounting
ISBN: 978-1118016114
1st edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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