Case Study

NO WEAKNESS IMPLICATION/EFFECT

Aizad could employ his

friends/family members and get
to decide their pay according to
The recruitment process is done his liking. Since Aizad also can
1 by Aizad alone without approval decide the salary without
from the managing director. approval, he may decide to
increase the amount of salary
and this would result in
overpayment of salary.

The staff may missing in action

after marriage, or join the
There is no proper procedures of company only because the want
the loan application and it is to get the loan. For employees
that unable to pay the loan, this
2 approve by Aizad alone. The
may increase the bad debt of the
procedures didn't indicate the company and distrupt the cash
maximum amount of loan. flow of the company which may
be use for other operating
purpose.

Difficult to identify missing form.

The form is not pernumbered. Unable to tace the staff that
3 There is also no signatory on the loans. No signatory indicate that
form. the loan approved wothout being
authorised.

Employees could lie saying that

No time card is kept by the
company. Employees will fill up they went to site but actually
doing other things. Without time
4 the claim forms stating the time
card, it is difficult to verify the
spent and date they visited the
claim form. Which may cause
site.
overpayment of salary

Aizad did not approve/verify the Osman may have wrongly

5 works of Osman before passing prepared the payroll sheet
the slip to the finance manager. because no second checker.
 There may be
misstatement/error made in the
The finance manager sign the
amount. Also they may be
6 cheques without further check
ficticious staff. This can cause
on the amount
overpayment/underpayment of
salary.

The employee may claim that

The employees collect the pay
they havent receive the pay
cheques and payslips on payday
7 check because no proof of them
without any endorsement to
receiving. This can lead to double
acknowledge receipt on it.
payment.
RECOMMENDATION STRENGTHS

The recuitement process should

be the process including the
letter of appointment and pay Eroilga has proper remuneration
rate should be approved by the and remuneration policies by
managing director. Aizad should which each employee pay rate is
not be the only person based on qualification experience
interviewing. Recommend to and expertise.
have at least 2 or 3 interviewrs so
that the interview wont be bias.

To offer loan based on salary The company provides marriage

scale to who have worked at least loan for the employees. This
3 years in the company. The loan could increase your motivation
amount should be agreed and to work and have sense of
approved by managing director, belonging to the company. This
not just Aizad alone. encourages staff loyalty.

To maintain a prenumbered form

for better filling process. To have
at least 3 signatory on the form, 1 There is triplicate form and is
kept by 3 persons.
is employee, 1 is Aizad and lastly
managing director.

Time card should be

implemented and those who
Employees have flexibility to visit
went to site directly should take the site without going to office.
pictures as a prove or have a
This motivate employees to work
digital time card system. Login
because they are free to do
from app/website that detect
location and time of clocking in to anything.
work.

Aizad should approve/verify and

check the work of Osman before The company maintains a proper
passing the slip to the Finance payroll master file
Manager.
The finance manager sign the
cheques after further check on
the amount

The employees collect the pay

cheques and payslips on payday
must endorse to acknowledge
receipt on it.
Case Study

NO WEAKNESS IMPLICATION/EFFECT

Musa can overcharge the

Musa decides on every matters
customer in order to get more
such as charges and payment
bonuses. Musa can also simply
1 schedule without a proper scale charges on the customer by
to charge. On top of that he
giving discount or offer to his
receives 5% bonus on total
friends/family becuase he
amount charge to customer.
decides on every matters.

As Musa agree on his own will,

All the terms and agreement are there might be customer who do
decided by Musa without not want to pay the deposit at all
referring to the standard policy of because customer do not have to
2 the company. Moreover the
sign at all. Defer of deposit
customer have the option to pay payment may distrupt the cash
the deposit or defer the deposit flow and delay the receive of
payment, all based on agreement revenue. | simply make
with Musa. agreement may cause breach and
loss trust on Aminah.

Cash payment not immediately

There may be theft for the cash
recorded and no evidence of
payment or lost of the cash
depositing it into the bank. There payment. No segregation of
is also no segregation of duties as
duties may cause Cathy to
3 Cathy is doing the accounting job overwork, demotivated and may
and advertising job which lead to
no monitiring process whenever incured more errors or mistakes
she is out of the office. Due to in her work. Cathy's absence
that Musa is allowed to accept from the office may lead to zero
monitoring pf payment.
the payment.
 Rare visitation to office can lead
to less monitoring. Staff can do
whatever they like since none of
Aminah rarely comes to the
the transactions require approval
office, only once in two week to
from Aminah. This can lead to
check on the work schedule and
fraudulent activities. By hiring
4 payments received. Since there
part time to do bank
are not mant staff, she employs a
reconciliation may lead to more
part time worker to do bank
error because the part time not
reconciliation.
familiar with the day to day
transaction. She may also miss
out certain documents.
RECOMMENDATION STRENGTHS

Aminah has low staff turnover.

There should be a proper scale to Most of the staff especially Musa
charge and Musa should get have been working with the
approval from higer up on the company almost 10 years. This
charges to customer. allows the company maintain
their client base.

The agreement must follow the

standard policy of the company
and must be check and verified Aminah requested documents
by Aminah. The company must from the bank and requires that
insist on the deposit payment. bank reconciliation to be
Those customers who cannot pay performed every month.
deposit cannot be given the
advetising services.

To hire staff that are competent

in their area. Eg. one staff to
handle the advertising job. To
bank un cash payment everyday
and to record immediately in the
system. Musa must not be allwed
to accept payment since he is
from different department.
Recommended that Aminah drop
by the office at least 2-3 times a
week. To hire a permenant staff
to do bank reconciliation, and be
checked by Cathy the manager.