Control Deficiency Control Recommendation

Overtime Reports are not reviewed prior to the All Overtime reports should be reviewed by a
payment being made as they may review the responsible officials prior to payment being
report after the payment being made which made.
may result in high chance of misstatements as
there may be unauthorised overtime or
amounts which will result in increase in payroll
costs
When the company decides to add an Whenever the company decides to add an
additional staff on a short notice they do not additional staff they have to complete the
complete the joiners form but the production joiners form.
supervisor notifies the payroll department by
email on day they commence employment
which may result in increase in fictitious
employees in the company resulting in increase
in payroll costs.
The Financial Controller only investigates the The bank should review the items on a weekly
reconciling items if it is significant and does not basis even if the reconciliation items are not
review the items which are not significant significant.
which will reduce the effectiveness and lack of
assurance of bank reconciliation.
The Internet Banking system is a two step The log in details should be known to only
verification process which may result in high selected staff with appropriate authority
chance of misstatements as any person can
enter into internet banking system to set up
new payees or to withdraw funds which will
reduce the effectiveness of internet banking
system.
This will increase the automated system The monthly payroll calculations should be
generated errors as errors can not identified on reviewed by a responsible officials
a timely basis resulting in increase or decrease
in the payroll costs.