Reference no: EM132489835

Point 1: The case presented here is based on an actual situation. Centennial Construction Company, headquartered in Dallas, Texas, built a Rodeway Motel 35 miles north of the city. The construction foreman, Slim Chance, hired 40 workers to complete the project. Slim had the construction workers fill out necessary tax forms and sent these documents to the home office.

Point 2: Work on the motel began on April 1 and ended September 1. Each week, Slim filled out a timecard for hours worked for each employee during the week. Slim faxed the timecards to the home office, which prepared payroll checks every Friday morning. Slim drove to the home office on Fridays, picked up the paychecks, and returned to the construction site. At 5 pm each Friday, Slim distributed the paychecks to the construction crew.

Question 1: Describe the internal control weakness in the situation. Specify what negative result(s) might occur as a result. Please advise on how you would correct the internal control weakness