Some of the failures that have detected, as result of too much pressure on the foreman is that there is no way to locate information about the verification process for the hiring of 20 employees, rather than tax forms that were presented at the main office by the foreman of the project.
This procedure gives the opportunity for the company to be subject to fraud, since there is no guarantee that …show more content…
A practical way to verify that this is an acceptable situation, is to send at least one day per week an administrative representative of the company, which will be in charge of the verification of payment of employees, as well as gather any necessary documentation and make a personal file to each employee in that job.
It is common for companies to seek economize and save on expenses, trying to get the most possible, instead of spending more than what is necessary, however, the company could lose more than it could earn, even the suspension of the project if is not in compliance with the laws.
The Sarbanes Oxley Act of 2000, Title III, Section 302 indicates that periodic statuaries reports must include certification of:
-The signing officers reviewing the report.
- The report does not contain any false materials or omission of material that could be considered misleading.
-The Financial statements presents fairly the financial condition of the