Theta Construction Company, headquartered in Calgary, built a Roadway Inn in High River, 64 kilometres south of Calgary. The construction foreman, whose name was Slim, moved into High River in March to hire the 40 workers needed to complete the project. Slim hired the construction workers, had them fill out the necessary tax forms, and sent the employment documents to the home office, which opened a payroll file for each employee.
Work on the motel began on April 1 and ended September 1. Each Thursday evening Slim filled out an electronic time card that listed the hours worked by each employee during the fiveday workweek that ended at 5:00 p.m. on Thursday. Slim emailed the time sheets to the home office, which prepared the payroll cheques on Friday morning. A courier delivered the payroll cheques to Slim, and at 5:00 p.m. on Friday he distributed the payroll cheques to the workers.
Required
1. Describe in detail the internal control weakness in this situation. Specify what negative result(s) could occur because of the internal control weakness.
2. Describe what you would do to correct the internal control weakness.