Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive /  How might the owner of a construction company determine whether a supervisor who distributes payroll and has authority to hire and fire employees has fictitious employees on the payroll and is cashing the related payroll checks? 2

 How might the owner of a construction company determine whether a supervisor who distributes payroll and has authority to hire and fire employees has fictitious employees on the payroll and is cashing the related payroll checks? 2

Business

 How might the owner of a construction company determine whether a supervisor who distributes payroll and has authority to hire and fire employees has fictitious employees on the payroll and is cashing the related payroll checks?

2. Why is it desirable to have at least two officials approve pay rate changes?

3. Do you agree? Please explain! There are a few ways to check for this, such as checking social security numbers, having databases with employee information (and pictures) that can be checked my the owner and have a set wages budget. In the end it might be impossible to catch everything so that is why it is desirable to have two people overseeing these activities.

4.Do you agree? Please explain! Time cards would work if the company is a small one. I would just put more than one person in charge of payroll so they could watch each other, preferably one to be a major tattle-tale.

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

The situation described is a very common and easy method to embezzle. Caution when investigating is needed because this situation often involves collusion with the office staff, mainly the payroll clerk. Consider all of the above and perform as many as are feasible:
a. Ask to examine the payroll records for a section or a crew, including the personnel file. The records may be incomplete which provides a reason to follow up with a possibly bogus employee.
b. If a union is involved, verification of the employee can be determined with a call to the union.
c. State departments of labor may be able to follow-up with a social security number when a bogus employee is suspected.
d. A tour of the job site meeting the crew might work.
e. A review of the work budgets for the amount of employees needed versus the number being paid may reveal differences. Also the expected profit on the job may be out of budget.
f. An examination of the endorsements on cancelled checks may lead to discovery.
g. Remove the authority to hire and fire from the supervisor.

2. Pay rates change approvals by two officials can provide some assurance against collusion. The two officials should not be in the same line of authority, or the same department. An effective means of cheating would be for a supervisor to raise the pay of an employee while asking for a kickback of part of the amount.

3. The two people need to be separated, both physically and within the line of authority, but it is true that there is no foolproof way to stop embezzlement. A background and credit check of employees who could collude might reveal something; for instance, a past problem, credit issues, drug use, spotty work history, etc. Endorsements on pay checks might be telling

4. Having been involved in several of these cases, the employee tends to think he/she is underpaid and/or overworked. Review of comparable pay rates in the marketplace, and the number of hours worked plus the quality of the work may point to a reason to steal.

Related Questions