Audit procedures for directors' emoluments (1)

Question 1

Existence (emoluments disclosed FSs director)

Answer 1

Agree the directors’ emoluments disclosed in FSs to a schedule of directors’ emoluments for year for each director

Question 2

What should the schedule of emoluments show?

Answer 2

Salary
Bonuses
Benefits
Pension contributions and any other amounts such as “golden hellos”

Question 3

Existence (pension contribution)

Answer 3

Vouch salary and pension contribution amounts to monthly payroll records and bank statements

Question 4

Existence (board meeting)

Answer 4

Vouch bonuses and any “one-off” payments to board meeting minutes and payroll records and bank statements

Question 5

Rights and contributions (directors contracts employment entitlements)

Answer 5

Verify the emoluments paid to directors during the year to their contracts of employment ensuring directors’ entitlements to these amounts

Question 6

Completeness (board meeting bonuses authorised)

Answer 6

Review board/renumeration committee minutes to verufy amounts of any directors’ bonuses and other amounts and check that these payments are appropriately authorised

Question 7

Completeness (cash book significant accounted)

Answer 7

Review cash book during the year and in past year end period and ensure significant sums have been appropriately accounted

Question 8

Completeness (directors emoluments FS recorded)

Answer 8

Ask directors to confirm in writing that the emoluments disclosed in the FSs are complete and accurately recorded

Question 9

Completeness (review emoluments director business activities)

Answer 9

Analytically review each directors’ enoluments in comparison to both prior year emoluments and expected emoluments given the business’ activities during the year