- This topic has 1 reply, 2 voices, and was last updated 3 years ago by
.
- Posts
maam in the 4th control deficiency the following is included (kaplan kit):
“Holiday request forms are required to be completed and authorised by relevant line managers, however, this does not always occur.
This could result in employees taking unauthorised leave, resulting in production difficulties if an insufficient number of employees are present to operate the power plant.
In addition, employees taking unauthorised leave could result in an overpayment of wages.”my doubt is that how can employees taking unauthorised leave result in an “overpayment of wages” because the earlier part of the scenario mentioned that there are clock cards with security staff keeping watch so that other employees cannot clock in (for say a person on holiday). so then how will unauthorised leaves lead to overpayment of wages?
As you have copied this out the first thing I suggest is “resulting in production difficulties if an insufficient number of employees are present to operate the power plant”. This is a business risk that has nothing to do with control deficiencies that could result in misstatement in the financial statements (so I recommend you ignore).
It’s always difficult with these questions – because the scenario must be kept brief – to know what to infer/suppose/imagine.
If someone is an employee – as opposed to “casual labour” – they are on a payroll – and they have a contract of employment which entitles them to be paid a weekly wage, take a number of days holiday, etc, etc. The employee will also have rights in law – e.g. to sick leave/pay, maternity/paternity leave, etc.
The clock cards are then a control to identify poor time-keeping (so employees can be cautioned) and absenteeism (whether authorised or not).
Each employee will be paid their weekly wage regardless of what it says on the clock card – their pay is not “docked” (“docking” pay for lateness has been an illegal deduction from wages in the UK for more than 25 years). The hours on the clock card are, however, used for paying overtime.
So an employee could be paid for unauthorised absence – and it would be the company to try and recoup that payment (or the hours in overtime!)
- You must be logged in to reply to this topic.