Kankakee Tool Company

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Kankakee Tool Company

• Group 7
• Tarek Amin
• Amanda Golden
• Neha Gore
• Brian Kristof

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Kankakee Tool Company

• A medium-sized producer of custom machine tools
  for industrial and consumer markets.
• 96 million from last years sales.
• Single production facility
• 35 machines
• 129 employees at facility

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Payroll Strategy

• ?

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Payroll Strategy

• To pay employees competitive wages for the actual
  work performed.
• To keep track of production costs

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Control Objectives

• ?

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Control Objectives

• Maintain Security
• Accurate Information
• Proper Authorization
• Completeness
• Classification of Compensation Methods
• Validity

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Risks Associated with Security

• ?

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Risks Associated with Security

• Wrong people accessing computers
• Employees clocking in for each other
• Computer Hackers
• Stealing
• Hard Copy Transfer

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Risks Associated with Accuracy

• ?

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Risks Associated with Accuracy

• Misprinting of Checks
• Handing Checks to wrong person
• Computer Program Malfunctions
• Not getting paid for right amount of hours
• Time card complications

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Risks Associated with Authorization

• ?

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Risks Associated with Authorization

• Supervisor Approval/Disapproval
• Time Card Fraud
• Agency Problem

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Strengths

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Strengths

• Use of Computer Programs
• Password Protection
• Hard Copies
• Accountability
• Authorization

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Weaknesses

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Weaknesses

• Multiple Computer Programs
• Failure Mode Errors
• Time Card Confusion
• Timekeeping Department-Supervisor
• Controller and Supervisor Control
• Redundancy

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Payroll Strategy

• To pay employees competitive wages for the actual
  work performed.
• To keep track of production costs

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Recommendations

• ?

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Recommendations

• New Timecards/New Layout
• One computer program
• Clocking in twice
• Backup Hard drive
• Distribution responsibilities
• Routine Inspection of Computer System

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• Any Questions
• ?
• Thanks!