Solving problem

You have been hired to evaluate the payroll system for the Skip-Rope Manufacturing company. The company processes its payroll in-house. Use Table 15-1 (the photo I attached below) as a reference to prepare a list of questions to evaluate Skip-Rope’s internal control structure as it pertains to payroll processing for its factory employees. Each question should be phrased so that it can be answered with either a yes or a no; all “no” answers should indicate potential internal control weaknesses. Include a third column listing the potential problem that could arise if that particular control were not in place.

Answer preview

Are the employee’s data well controlled to avoid access by unauthorized persons?		Ineffective integrity control methods that can lead to loss of sensitive information.
Are the mechanisms that focus on accessing of data only to the authorized persons?		Limited knowledge by employees on encryption of data sent by mails or uncontrolled access to information within the system by all employees

(300 words)