Weaknesses
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Consequence
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Recommended control
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Workers clock in by
entering their unique number on a key pad.
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It’s not supervised,
then workers may swap numbers and clock in employees who are absent. SouthLea
will then pay employees who have not worked.
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Clocking in and out
should be supervised by the foreman.
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The foreman can issue temporary numbers for new empoyees.
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The foreman may be able to issue a number for a fictitious employee and have waged paid into his own account.
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The foreman must obtain authorisation to issue a new number from HR director. The issue of a new number should be backed up with the new employee's contract.
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Overtime is not authorised before adding to standard pay.
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Employees may claim for overtime that they have not worked.
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The foreman must uathorised the list of overtime payments before adding it to the net pay.
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The staff in the wages department can set up employee records wthout authorisation
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The records may be set up for fictious employees whose wages are paid by cash to the clerks.
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Any amendments to employee records must be authorised by the HR director and backed up with the employee contract.
The HR director should review a weekly print out of amendments to ensure they are all reasonable and authorised.
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Employees are paid in cash.
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Cash is easy to misappropriate. Employees may claim that they didn't receive their payments as they are not expected to sign for their wage envelopes.
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It's better to make the payments by trasfer.
If not, a list of cash payments should be kept and employees should sign to say they have received their envelope.
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