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.
| Authorization of hiring, firing, wage-rate and salary adjustments, salaries, and payroll deductions.
| Review and approval of employees' attendance and time information; monitoring of employee scheduling, productivity, and payroll cost variances.
| 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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