dolution

Discuss the major control implications of batch systems with real-time data input. What compensating procedures are available?

Payroll Fraud

John Smith worked in the stockyard of a large building supply company. One day he unexpectedly and without notice left for California, never to return. His foreman seized the opportunity to continue to submit timecards for John to the payroll department. Each week, as part of his normal duties, the foreman received the employee paychecks from payroll and distributed them to the workers on his shift. Since John Smith was not present to collect his paycheck, the foreman forged John’s name and cashed it.

Required:

Describe two control techniques to prevent or detect this fraud scheme.