Aud_ch13_5ed审计学.pptVIP

* * * * * * * * * * * * * * * * * Periodic Reconciliation Payroll bank accounts can be reconciled like any other bank account. In addition, payroll tax returns, and labour reports prepared for production provide other avenues for reconciliation Audit Evidence in Management Reports and Files Payroll systems produce numerous reports that can be used as supporting evidence for assertions. Personnel Files - Detailed individual employees files (existence). Timekeeping Records - Detailed records of hourly workers’ time. Payroll Register - A special journal containing detailed pay information. Audit Evidence in Management Reports and Files Labour Cost Analysis - Labour cost information used for purposes such as reconciliation and distribution of labour rates. Government and Tax Reports year-to-date earnings records employee T-4 reports Control Risk Assessment The major risks in the payroll cycle are paying fictitious employees, overpaying for time or production, or incorrect accounting for costs and expenses. General Control Considerations Proper segregation of responsibilities - for authorization, custody, recording, and reconciliation of payroll functions. Custody of payroll distribution by persons who do not authorize employees’ pay or prepare payroll cheques. Recordkeeping is performed by payroll and cost accounting personnel who do not make authorizations or distribute pay. Computer-Based Payroll With computer-based payroll, various records and approval signatures may not exist. They may all embedded in computerized payroll systems. Internal Control Questionnaire Information about payroll is often gathered initially by ICQ. Detailed Test of Controls Tests of controls should address all of the control objectives. Cut-off is important to revenue cycle. Tests include identification of population and expression of the action to be taken. Note dual direction of testing for completeness and validity requires selection of sample from appropriate population. See Exhibit 1