Payroll System 1
To: CEO, CFO, &Board of Management
From: Project Manager, Walter Knutzen
Date: July, 24 2017
Re.: Addressing Payroll at the Company
Introduction
As you know, our Payroll system has continuously faced numerous challenges. To reaffirm our commitment and to provide effective success to our stakeholders as well as the Company's success, this project has been proposed to address the issue. I seek your approval to carry on with the project as it would be beneficial to both the stakeholders and the Company, regarding profitability, efficiency and effective internal control. In the end, the implementation
…show more content…
Companies operating in the automotive industry are susceptible to fraud because of the inadequate and inexperienced accounting and financial staff, a large amount of cash kept on hand, and growing revenue as well as sales coming from the highly marketable stocks. The current trend in the industry provides dishonest employees with more opportunities to embezzle funds. Our company has not been exceptional from the payroll problems. Extensive research conducted by the Project team revealed the issues on the Company's current payroll system.
· There were cases of dishonest employees’ stealing automotive body parts and inventories to sell for money.
· There was evidence of fictitious journal entries being inserted in the dealership records.
· Business tenders were granted to favoured partners who promise to offer kickbacks.
· There were incomplete records on repairs and miscellaneous sales, which pointed out that some dishonest employees had been pocketing the money.
· Some payments were made by fake invoices prepared by respective employees to pocket the
…show more content…
When the process is done manually, responsible parties are more likely to forget or assume the compliance requirements. Failure to meet the required procedures would lead to fines and penalties to the Company. With the Payroll management in place, the concerned parties would be timely reminded of the need to pay a luxury tax, sales and use tax, payroll tax, excise tax as well as the need to abide by human resources, cash reporting, and environmental regulations and other laws proposed by either Federal or State agencies.
· Accounting reconciliation and analysis
The payroll management system would assist in the reconciliation and analysis of the accounting. It would help in tracking payment receivables, account payables, and ensure that the amount due for and by the Company are completed in time. Likewise, the payroll system allows the follow up, which would ensure that the money owed to the Company is paid within the time set.
· Effective internal control system to safeguard the Company
I believe that asset misappropriation by accounts payable fraud is occurring at Wayland Manufacturing Company due to a lack of proper internal controls. Making the company’s Chief Accountant responsible for additional day-to-day functions provides him with opportunity to commit by creating fictitious vendors with his information and then creating fictitious invoices. Newbaker can then conceal his fraud by approving the invoices for payment. Employees working at an organization for more than five years are more likely to commit fraud. Therefore, Newbaker’s six-year history with the company has made him trustworthy and very knowledgeable, which could indicate involvement in asset misappropriation. The high employee turnover could represent a past fraudster leaving before getting caught or employees refusing to continue with the asset misappropriation. In addition, the varying monthly accounts payable transactions ranging from the lowest being April 2014 and
The accounting system misallocated motors from the asset manufacturing equipment to inventory. There are issues of honesty, responsibility, and professional ethics.
Paycom software, Inc. is a software company which has the system based on cloud. This company provides payroll and HR service for many firms in United Stated. Many people manage and operate businesses think that payroll is their favorite work. But from the perspective of cost and profit - why businesses should use the services of payroll? There are some reasons why firms need this kind of business. (Paycom Software, 2014)
The Director of the Human Resources received complaints from several managers and the Senior Manager in Payroll. The complaint was regarding Personnel Actions being processed late in the Human Resources Information Center (HRIC). The Director was urged by the leadership to put the pressure on the on the team who processed these actions, since it was causing issues across the organization. With the knowledge of these concerns, he recognized it was necessary for him to determine why the Personnel Actions were being delayed and causing the issues brought about by the various levels of management.
or this action step, it is necessary to start this transformative process immediately so that the new software upgrade is centered around this change. You, the CIO, should recommend this decision as it falls under your domain, and the end decision shall be improved by the individual CEO. Jane Simpson, head of accounts payable and materials procurement should be consulted as this re-design shall directly affect her department. The rest of the department team and well as business information managers should be informed of this decision. F
Jay Morgan who is the operations manager is taking care of payroll responsibilities in addition to many other activities outside of his role. Payroll is a critical function to the organization and manual payroll activities are high risk activities. Implementing a Human Resource Information System for payroll processing will mitigate the risks and will be greatly beneficial to the current and future objectives for this growing organization.
The term “fraud” is commonly used to describe the use of deception to deprive, disadvantage or cause loss to another person or party. This can include theft, the misuse of funds or other resources, or more complicated crimes such as false accounting and the supply of false information. This case study of Mountain State Sporting Goods is an excellent example of individuals acting on the opportunity to financial benefit by committing what they thought was harmless adjustments, but in reality was fraud. In this case study there are is just so much wrong with this company and how it operates. We noticed multiple areas of concern before even seeing the financial statements and my concerns were confirmed upon further investigation.
The Consumer and Industrial Products, Inc a company where their headquarters is based in the United States , also doing business internationally with facilities in Europe, Asia and South America. They are a manufacturing company what produced well known products to individuals and industries. This company is experiencing a great deal of trouble with their internal Payable Audit System (PAS) and how it would purchase goods; receive goods and pays for them. They are challenged with the redundancy and the lack of productivity to their system. They were finding ways to lower costs and eliminating steps in how these processes are getting accomplished. They decided that they needed to change their system and the way they did things at their business. There are some people, their roles and departments that will be closely involved with the process of this project. Some of these important roles will come from Ted Anderson director of disbursements, Peter Shaw the user project manager and Linda Watkins project director for the Payable Audit System (PAS). In addition, the Steering Group and the IS management department will have some important roles to the project too. Finally, there will be several major problems with the development of the project and how the one person would deal with these issues.
Purpose of doing these for the company is to Penetrate the Finance at store level and to implement those for the better profits and better functioning of the company. Analyzing the
The quantity of accounting fraud cases keeps on rising. Fraud is a consistent thing that will reliably be around, and in a bigger number of routes than just a single. An extensive apportion of organizations out there fight with fraud, either from within the organization, or from outside the organization. Knowing how to manage this is essential for an organization to be productive over a drawn out extended period of time. The investigation regarding the matter of accounting fraud will utilize sources from the web and the DeVry school library. The principle territory we are planning to address is accounting fraud and how it could impact an organization by answering, the who, what, when and how. Its goal is to increase the awareness
As discussed, this project and its requirements highlight areas where future work/improvements can be made to increase the project and the outcome. The timeframe put on this project is something which can be changed to deliver a full implementation rather than “vanilla functionality” which would later need to be modified. Another factor to consider delivering a full implementation would be the capital investment which is used for this project as this needs to be topped
In today’s day and age, there is a lot of news that is related to corporate accounting fraud as companies intentionally manipulate their financial statements to show a better picture of their financial health. The objective of financial reporting is to provide financial information about a company to its various stakeholders such as investors and creditors so that these stakeholders can make decisions accordingly. Companies can show a better image of their financial well being by providing misleading information. This can be done by omitting material information from the books or deceitful appropriation of assets such as inventory theft, payroll fraud, check forgery or embezzlement. Fraudulent financial reporting will have an effect on the This includes but is not limited to; check forgery, inventory theft, cash or check theft, payroll fraud or service theft.
“The book-keeping, invoicing, stocktaking, payroll functions and customers’ details, weekly wage bill employee’s details are kept manually.”
Nowadays with the implementation of new emerging technologies, the way businesses keep this financial information has become computerised. At the moment businesses use computers with a computerised accounting system in order to perform many other new activities than what they were able to do in the past. Businesses can access financial information from different department in the organisation, access to the information through computers and find financial data very fast, being more efficient. (Beliss, 2013)