Reference no: EM132570844

Question - Ayday Auto Centre is a one-stop automotive company that provides all services from tyre repair and replacement to other automotive maintenance services. Currently the company employs 20 full-time employees. The following describes the payroll procedures for the company.

Every day, the employees use a time clock that is placed at a remote and unsupervised area to record their daily working time. At the end of the month, the employees submit the timesheets to their supervisor, Mr Danial. Since Mr Danial is busy with other duties, he asks each employee to exchange their timesheets with their colleagues, self-review and approve the timesheets before they forward them to the payroll clerk.

The payroll clerk, Miss Dania enters the employees' records using a computer that is shared with her colleagues. She then prepares a payroll register and sends it to the accounting department. When the accounting department employee, Miss Molly, gets the payroll register from Miss Dania, she assesses whether the payroll register is correct and then updates the payroll records in accounts payable, cash disbursement and general ledger accounts, which contain salary expense and cash accounts. She then prepares, prints and signs the employee pay-checks before distributes them to the employees. Discuss FOUR (4) risks in the payroll procedure at Ayday Auto Centre Sdn. Bhd.