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mansoor.
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- November 4, 2015 at 7:47 am #280414
in an internal control question, the scenario is wages.
and the last para is as follows:
“the finance director reviews the list of total payments to be made as per payroll records to the list of total bank transfers”
so u had to point out the deficiency and then suggest a test of control.
my deficiency was correct that: this current review by the FD will not catch employees missed due to error or catch ghost employees. (as per answer given in kit)
but i mentioned a different test of control which was:
the payroll system shd be amended to produce an Employee Addition/Deletion report, which would highlight the employee movement and all dept heads must review this and sign off and the FD should confirm that all heads have done so and then signed off himself.
the answer in the kit was:
“the FD should on a sample basis, compare payroll records to payment list and vice versa to confirm that payments are being made only to bona fide employees”
my questions:
is my control an acceptable answer?
is it ok to suggest an enhancement in a software as a control?thanks
November 4, 2015 at 8:06 am #280419Your control is excellent.
Enhancement is software is also fine eg to make it print out unusual events or transactions for scrutiny.
November 4, 2015 at 8:15 am #280422thank u!!
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