Describe substantive procedures you should perform in audit to confirm the completeness and accuracy of payroll expense.

Auditing and Assurance Revision Questions and 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.

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