The Audit Procedures

Topics: Human resource management, Expense, Salary Pages: 2 (359 words) Published: December 15, 2012
1.Identify FOUR (4) types of documents and its functions in Payroll and Personnel Audit Cycle 2. Give TWO (2) examples of each of Substantive Analytical Procedures in Payroll & Personnel Audit Cycle when auditing the accounts below: i- Payroll Expense Accounts

ii- Payroll-Related Accrual Accounts
3. Describe the duties that are performed within the personnel, timekeeping, and payroll processing functions. 4.a. Describe what are the key authorisation points in a payroll system. b.Explain the importance of establishing control procedures over the classification of payroll transactions.


Personnel| Authorization of hiring, firing, wage-rate and salary adjustments, salaries, and payroll deductions.| Supervision| Review and approval of employees' attendance and time information; monitoring of employee scheduling, productivity, and payroll cost variances.| Timekeeping| Processing of employees' attendance and time information and coding of account distribution.| Payroll processing| Computation of gross pay, deductions, and net pay; recording and summarization of payments and verification of account distribution.|

2.Payroll Expense Accounts:|
Compare current year with prior year payroll expense accounts| | Compare current and prior year payroll costs as percent of sales and industry data| | Compare labor utilization rates and statistics with industry data| | Compare budgeted payroll expenses with actual payroll expenses| | Estimate sales commissions with formula and recorded sales| | Payroll-Related Accrual Accounts:|

Compare current and prior years' balances in payroll related accounts| | Test reasonableness of accrual balance| |

3.The following duties are performed in the personnel, timekeeping, and payroll-processing functions: Personnel: Authorisation of hiring, firing, salaries/wage rates, salary adjustments, and payroll deductions. Timekeeping: Processing of employees' attendance and time...
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