Assertion and Related Control Activity - Payroll Flashcards Preview

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Flashcards in Assertion and Related Control Activity - Payroll Deck (18)
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1

Occurrence - Adequate personnel files

Review and test personnel files

2

Occurrence - Initiation of changes in employment status, wages or salaries, and benefits made by operating departments reported to the office of human resources

Review and test client's procedures for changing employee's records

3

Occurrence - Time clocks used to record time

Observe employees' use of time clock

4

Occurrence - Time cards approved by supervisors

Inspect time cards presented for approval by supervisor

5

Occurrence - Only employees with valid employee numbers paid

Review and test client's procedures for entering and removing employee numbers from the payroll master file

6

Occurrence - Use of payroll budgets with review by departmental supervisors

Review client's budgeting procedures

7

Completeness - Pre-numbered time cards accounted for by client personnel

Check numerical sequence of time cards

8

Completeness - Verification that all employees in the master payroll file submitted a time card for the pay period.

Review and test client's verification procedures

9

Authorization - Authorization procedures for (hiring and terminating employees, time worked, wage, salary, and commission rates, withholdings, benefits, and issuing payroll check

Review and test authorization procedures for each point of authentication in the payroll cycle

10

Accuracy - Verification of payroll amounts and benefit calculations

Review and test client's verification procedures

11

Accuracy - Use of payroll budgets with review by department supervisors

Review client's budgeting procedures

12

Accuracy - Changes to master payroll file verified through "before and after" reports and then reconciled to general ledger

Test reconciliation of "before and after" reports to payroll master file, and review reconciliation of master file to general ledger

13

Cutoff - Notices of additions, terminations, and changes to salaries, wages, and deductions reported promptly to the payroll processing function, after which the changes are updated promptly on the master payroll file

Review and test client's procedures for changes to master payroll file

14

Cutoff - All time sheets forwarded to the payroll department weekly

Review and test procedures for processing time sheets

15

Cutoff - Procedures that require recording payroll liabilities as soon as possible after they are incurred

Review and test procedures for recording payroll liabilities

16

Classification - Chart of accounts

Review chart of accounts

17

Classification - Independent approval and review of accounts charged for payroll

Review and test procedures for classifying payroll costs

18

Classification - Use of payroll budgets with review by department supervisors

Review client's budgeting procedures