Question

Explain the implication and provide a recommendation.

To prepare this analysis, use the following table structure: Weakness Implication Recommendation

Payroll cycle:

• Hourly employees track their regular time on time sheets.

Answer 1

Proper time tracking is necessary in order to prevent time theft.

Allowing employees to log their own hours can result in time sheet fraud, e.g  rounding up to the nearest hour or lying about the hours worked. Therefore, it results in incorrect billable and payable amounts, leading to financial losses.

While micromanagement is not recommended at all, employees should not be allowed to log in their own hours on time sheets. An independent person should be entrusted with that responsibility, and this responsibility should rotate from time to time. Use of time clocks can help in recording the exact times when the employees have logged in and out.