This case is based on an actual situation experienced by one of the authors. Gilead Construction, headquartered in Topeka, Kansas, built a motel in Kansas City. The construction foreman, Slim Pickin’s, hired the workers for the project. Pickin’s had his workers fill out the necessary tax forms and sent the employment documents to the home office. Work on the motel began on May 1 and ended in December. Each Thursday evening, Pickin’s filled out a time card that listed the hours worked by each employee during the five-day work-week ended at 5 p.m. on Thursday. Pickin’s faxed the time sheets to the home office, which prepared the payroll checks on Friday morning. Pickin’s drove to the home office after lunch on Friday, picked up the payroll checks, and returned to the construction site. At 5 p.m. on Friday, Pickin’s distributed the paychecks to the workers.

a. Describe in detail the internal control weakness in this situation. Specify what negative result could occur because of the internal control weakness.

b. Describe what you would do to correct the internal control weakness.