Answers:
Agree the total wages and salaries expense per the payroll system to the trial balance, investigate any differences.
Cast a sample of payroll records to confirm completeness and accuracy of the payroll expense.
For a sample of employees, recalculate the gross and net pay and agree to the payroll records to confirm accuracy.
Re-perform the calculation of statutory deductions to confirm whether correct deductions for this year have been made in the payroll.
Compare the total payroll expense to the prior year and investigate any significant differences.
Review monthly payroll charges, compare this to the prior month and budgets and discuss with management for any significant variances.
Perform a proof in total of total wages and salaries, incorporating joiners and leavers and the annual pay increase.
Compare this to the actual wages and salaries in the financial statements and investigate any significant differences.
Select a sample of joiners and leavers, agree their start/leaving date to supporting documentation, recalculate that their first/last pay packet was accurately calculated and recorded.
Agree the total net as pay per the payroll records to the bank transfer listing of payments and to the cashbook.
Agree the individual wages and salaries as per the payroll to the personnel records for a sample.
Select a sample of weekly overtime sheets and trace to overtime payment in payroll records to confirm completeness of overtime paid.