CAS3701 Assignment 11
2024 - DUE 13 September
2024
QUESTIONS WITH COMPLETE ANSWERS
,CAS3701 Assignment 11 2024 - DUE 13 September 2024
QUESTION 1
1. BACKGROUND LearnCo. Limited (LearnCo.) is a top training provider
that offers skills development training solutions to businesses and
government institutions in South Africa. The company is based in Gauteng,
South Africa and has a 30 June 2024 year-end. LearnCo. offers a wide
variety of courses in health and safety, leadership and managerial skills,
occupational health and even on emerging technologies like machine
learning, robotics, coding and artificial intelligence. The company conducts
the training at the client’s workplace premises. LearnCo. employs 250
facilitators permanently. The facilitators come from a diverse range of fields
in line with the courses offered by the company. The facilitators spend
majority of their time travelling to clients throughout the country and
consequently, LearnCo. incurs a high amount of expenditure related to
travel claims. You have recently been appointed as the Financial Manager
(FM) of LearnCo. The Chief Financial Officer (CFO) is orientating you about
the company and its payroll system. The payroll system is outlined below.
2. PAYROLL SYSTEM LearnCo. uses a payroll software called Revolve X.
Revolve X is highly advanced and is powered by artificial intelligence (AI).
Revolve X automates the majority of routine payroll-related transactions.
These include screening CVs submitted online, shortlisting candidates,
performing monthly reconciliations, filing electronic reports, computing the
monthly payroll expense, and validating and processing input data for the
payroll. Any valid employee of LearnCo. has login access. LearnCo. has a
, limited Human Resource (HR) unit in place. The HR unit currently consists
of the HR manager and two payroll clerks. The HR manager is currently
responsible for conducting interviews, completing the recruitment process
and retirements. The CFO explained that other than the screening of CVs
and shortlisting of candidates against pre-determined criteria, Revolve X
also assists the HR manager by providing pre-populated templates for
employee contracts. The payroll clerks are responsible for capturing
approved rates for travel claims, medical aid, provident fund and other
applicable expenditures. Revolve X also houses the employee database.
As the FM, you will approve and sign off the employee contracts on behalf
of the company, ensure that applicable rates are up to date and that the
schedules produced by the system are correct prior to authorisation for
payment.
2.1 Dismissals and resignations Dismissals and resignations occur
seldomly at LearnCo. The HR manager is currently overloaded with his
duties, so management decided to move the handling of dismissals and
resignations solely to the CFO. You were busy reviewing the payroll and
noted details of two employees, with employee numbers 452901 and
370213, who were dismissed in September 2023 and December 2023,
respectively, but were still included in the payroll. Fortunately, no payments
have been made to the employees since their dismissals. When you
followed up on this matter with the CFO, he indicated to you that he has a
practice of removing such employees from the payroll at the company’s
year-end.
2.2 Employee expense Employees are paid salaries on the last working
day of the month. LearnCo. has no set salary structure for its employees.
2024 - DUE 13 September
2024
QUESTIONS WITH COMPLETE ANSWERS
,CAS3701 Assignment 11 2024 - DUE 13 September 2024
QUESTION 1
1. BACKGROUND LearnCo. Limited (LearnCo.) is a top training provider
that offers skills development training solutions to businesses and
government institutions in South Africa. The company is based in Gauteng,
South Africa and has a 30 June 2024 year-end. LearnCo. offers a wide
variety of courses in health and safety, leadership and managerial skills,
occupational health and even on emerging technologies like machine
learning, robotics, coding and artificial intelligence. The company conducts
the training at the client’s workplace premises. LearnCo. employs 250
facilitators permanently. The facilitators come from a diverse range of fields
in line with the courses offered by the company. The facilitators spend
majority of their time travelling to clients throughout the country and
consequently, LearnCo. incurs a high amount of expenditure related to
travel claims. You have recently been appointed as the Financial Manager
(FM) of LearnCo. The Chief Financial Officer (CFO) is orientating you about
the company and its payroll system. The payroll system is outlined below.
2. PAYROLL SYSTEM LearnCo. uses a payroll software called Revolve X.
Revolve X is highly advanced and is powered by artificial intelligence (AI).
Revolve X automates the majority of routine payroll-related transactions.
These include screening CVs submitted online, shortlisting candidates,
performing monthly reconciliations, filing electronic reports, computing the
monthly payroll expense, and validating and processing input data for the
payroll. Any valid employee of LearnCo. has login access. LearnCo. has a
, limited Human Resource (HR) unit in place. The HR unit currently consists
of the HR manager and two payroll clerks. The HR manager is currently
responsible for conducting interviews, completing the recruitment process
and retirements. The CFO explained that other than the screening of CVs
and shortlisting of candidates against pre-determined criteria, Revolve X
also assists the HR manager by providing pre-populated templates for
employee contracts. The payroll clerks are responsible for capturing
approved rates for travel claims, medical aid, provident fund and other
applicable expenditures. Revolve X also houses the employee database.
As the FM, you will approve and sign off the employee contracts on behalf
of the company, ensure that applicable rates are up to date and that the
schedules produced by the system are correct prior to authorisation for
payment.
2.1 Dismissals and resignations Dismissals and resignations occur
seldomly at LearnCo. The HR manager is currently overloaded with his
duties, so management decided to move the handling of dismissals and
resignations solely to the CFO. You were busy reviewing the payroll and
noted details of two employees, with employee numbers 452901 and
370213, who were dismissed in September 2023 and December 2023,
respectively, but were still included in the payroll. Fortunately, no payments
have been made to the employees since their dismissals. When you
followed up on this matter with the CFO, he indicated to you that he has a
practice of removing such employees from the payroll at the company’s
year-end.
2.2 Employee expense Employees are paid salaries on the last working
day of the month. LearnCo. has no set salary structure for its employees.
