The following audit procedures are typical of those found in auditing the payroll and personnel cycle: 1. Examine owner approval of rates of pay and withholdings. 2. Examine evidence that payroll hours and wage rates are verified by an independent person. 3. Select a sample of 40 entries in the payroll journal and trace each […]
Following are some of the tests of controls and substantive tests of transactions procedures often performed in the payroll and personnel cycle. 1. Examine the time card for the approval of a supervisor. 2. Recompute hours on the time card and compare the total with the total hours for which the employee has been paid. […]
Items 1 through 9 are selected questions typically found in internal control questionnaires used by auditors to obtain an understanding of internal control in the payroll and personnel cycle. In using the questionnaire for a client, a “yes” response to a question indicates a possible internal control, whereas a “no” indicates a potential deficiency. 1. […]
Identify five general ledger accounts that are likely to be affected by the payroll and personnel cycle in most audits. 20-2 (OBJECTIVES 20-1, 20-3) Explain the relationship between the payroll and personnel cycle and inventory valuation. 20-3 (OBJECTIVE 20-2) Distinguish among a payroll master file, a W-2 form, and a payroll tax return. Explain the […]
1. List five tests of controls that can be performed for the payroll and personnel cycle and state the purpose of each control tested. 2. Explain the circumstances under which an auditor should perform audit tests primarily designed to uncover fraud in the payroll and personnel cycle.
METHODOLOGY FOR DESIGNING SUBSTANTIVE ANALYTICAL PROCEDURES AND TESTS OF DETAILS OF BALANCES Design and perform substantive analytical procedures and tests of details for accountsin the payroll and personnel cycle.
1. Describe why transactions in the payroll and personnel cycle are generally more significant than payroll-related balance sheet accounts. 2. Explain the differences in the primary roles performed by human resources, the employee’s primary supervisor, and those who oversee the creation of a payroll journal or listing and the payroll master file.
BUSINESS FUNCTIONS IN THE CYCLE AND RELATED DOCUMENTS AND RECORDS Describe the business functions and the related documents and records in the payroll and personnel cycle.
ACCOUNTS AND TRANSACTIONS IN THE PAYROLL AND PERSONNEL CYCLE Identify the accounts and transactions in the payroll and personnel cycle.
AUDIT OF THE PAYROLL AND PERSONNEL CYCLE Identify the accounts and transactions in the payroll and personnel cycle.Describe the business functions and the related documents and records in thepayroll and personnel cycle.Understand internal control and design and perform tests of controls and substantivetests of transactions for the payroll and personnel cycle.Design and perform substantive analytical […]
