1. You have been hired to evaluate the payroll system for the skip-rope Manufacturing Company.

The Company processes its payroll in-house. Prepare a list of questions to evaluate kip-!ope"s internal control structure as it pertains to payroll processing for its factory employees. #ach question should be phrased so that it can be ans$ered $ith either a yes or a no% all no ans$ers should indicate potential internal control $eakness. &nclude a third column listing the potential problem that could arise if that particular control $ere not in place. '. The local community feels that secondary school education is a necessity in out society and that lack of education leads to a number of social problems. (s a result) he local school board has decided to take action to reverse the rising dropout rate. The board has voted to provide funds to encourage students to remain in school and earn their high school diplomas. The idea is to treat secondary education like a *ob and pay students. The board) ho$ever) could not agree on the details for implementing this ne$ plan. Consequently) you have been hired to devise a system to compensate students for staying in school and earning a diploma. (s you devise your compensation scheme) be sure it meets the follo$ing general control ob*ectives for the payroll cycle+ (ll personnel and payroll transactions are property authori,ed. (ll employees are assigned to do productive $ork) and they do it efficiency and effectively. (ll transaction are accurately recorded and processed. (ll records are maintained. (ll disbursement are proper Required: -rite a proposal that addresses these five .uestions+ a. /o$ should the students be compensated0e.g) for attendance) grades12 b. /o$ and by $hom $ill the payments be authori,ed2 c. /o$ $ill the payments be processed2 d. /o$ should the payments be made be made0e.g) in cash or other means12 e. -hen $ill the payments be made2 3. ome accountants have advocated that a company"s human assets be measured and included directly in the financial statements. 4or e5ample) cost of hiring and training an employee $ould be recorded as an asset that is amorti,ed over the employee"s e5pected term of service. 6o you agree or disagree2 -hy2 7. 8ive t$o specific e5amples of non-routine transactions that may occur in processing cash receipts and updating accounts receivable. (lso specify the control procedures that should be in place to ensure the accuracy) completeness) and validity of those transactions. 9. (s manager of a local pi,,a parlor) you $ant to develop a balance scorecard so you can more effectively monitor the restaurant"s performance. Required+ a. Purpose at least t$o goals for each dimension) and e5plain $hy those goals are important to the overall success of pi,,a parlor. :ne goal should be purely performance-oriented and the other should be risk-related. b. uggest specific measures for each goal developed in part a.

c. #5plain ho$ to gather the data needed for each measure developed in part b. ;. The balanced scorecard measures organi,ational performance along four dimensions. &s it possible that measures on the customer) internal operations) and innovation and learning dimension could be improving $ithout any positive change in the financial dimension2 &f so) $hat are the implications of such a pattern2