Explain the internal control procedures that Research Sdn Bhd should adopt over the updating of its wages master file with regard to interviewer starters and leavers. Research Sdn Bhd is a marketing research firm.The company employs an interview manager to control 40 interviewers who conduct interviews withhypermarket customers. The interviewers are paid monthly in arrears for hours worked, with hourlyrates and productivity bonus payments being dependent on surveys undertaken. They submit theirmonthly time sheets to the company's head office for processing and the company operates a separatemonthly payroll specifically for interviewers' wages.The company's wages software program produces on request:A master file update report - detailing the update report number, the amendments made sincethe last report, and the number of existing employees on file.●A current period payment details report showing gross payment, deductions, and netpayment amounts - by employee and in total.Wage slips the computerised production of which is requested only after other controlprocedures employed have ensured that information provided on the current period paymentdetails report (above) agrees with a hash total representing gross wages input.The interviews manager is based at the company's head office, together with the accounting andadministration departments. He is responsible for the recruitment of interviewers, deployment toassignments, overseeing of interview work and for the authorisation of pay rates and bonus payments.The company has a good control environment including appropriate segregation of duties throughoutthe specific areas of the business. Head office employees include a company accountant, a wagessupervisor and three wages clerks.

Answered: Explain the internal control procedures…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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