Question

Explain the implication and provide a recommendation.

To prepare this analysis, she asked you to use the following table structure: Weakness Implication Recommendation

Payroll cycle:

• There does not appear to be a clear process for notifying the payroll clerk of terminated employees at the branch level. The branch secretary usually informs head office at the end of the week.

Answer 1

Weakness	Implication	Recommendation
Departmental manager does not notify the payroll clerk of terminated employees at the branch level.	Excess payment made to terminated employee for days beyond actual termination date	The computer system should not allow the payroll clerk to access the terminated employee's record. Therefore, any payment would be automatically stopped.
The branch secretary usually informs head office at the end of the week	The head office can update its payroll only once a week.	If the departmental manager payroll information for a terminated employee on the payroll register, he must immediately take corrective action at the departmental level, and the HR level.
	The payroll clerk might be working in collusion with the terminated employee or any other employee or even a non-employee	If a sophisticated computer system is not in place, the internal control system should require the branch secretary to communicate the termination to HO immediately.