[Date]
CAS3701 Assignment
11 2024 - DUE 13
September 2024
QUESTIONS WITH 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. Employees can
secure a higher pay-rate upon their appointment and during their performance
reviews based on performance, experience and negotiation skills. Revolve X
retrieves input data for the payroll payment from the employee database (which
contains a list of employees, their annual approved salary and benefits) and PAYE,
medical aid and provident fund tables. Revolve X is programmed to use AI to
CAS3701 Assignment
11 2024 - DUE 13
September 2024
QUESTIONS WITH 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. Employees can
secure a higher pay-rate upon their appointment and during their performance
reviews based on performance, experience and negotiation skills. Revolve X
retrieves input data for the payroll payment from the employee database (which
contains a list of employees, their annual approved salary and benefits) and PAYE,
medical aid and provident fund tables. Revolve X is programmed to use AI to
