Assertion Evidence for Payroll Flashcards Preview

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Flashcards in Assertion Evidence for Payroll Deck (14)
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1

Assertions about Classes of Transactions - Occurrence

Trace a sample of payroll checks to the master employee list to verify validity

2

Assertions about Classes of Transactions - Completeness

Trace a sample of time cards / sheets to the payroll register

3

Assertions about Classes of Transactions - Authorization

Test a sample of payroll checks for the presence of an authorized time card/sheet

4

Assertions about Classes of Transactions - Accuracy

Recompute the mathematical accuracy of a sample of payroll checks.

5

Assertions about Classes of Transactions - Cutoff

Trace a sample of time cards/sheets before and after period end to the appropriate weekly payroll report, and trace the weekly payroll report to the general ledger to verify payroll transactions are recorded in the proper period

6

Assertions about Classes of Transactions - Classification

Examine a sample of payroll checks for proper classification into expense accounts

7

Assertions about Account Balances at Period End - Existence

Vouch selected amounts from the account analysis schedules for the accruals to supporting documentation (payroll tax returns, corporate benefit policies, etc.)

8

Assertions about Account Balances at Period End - Rights and obligations

Review supporting documentation to determine that the entity is legally obligated to pay the liability. Test a sample of bank reconciliations for the payroll bank account.

9

Assertions about Account Balances at Period End - Completeness

Search for unrecorded liabilities

10

Assertions about Account Balances at Period End - Valuation and allocation

Obtain an account analysis schedule for accrued payroll liabilities; foot schedules and agree total to general ledger. Compare amounts accrued to supporting documentation, such as payroll tax returns.

11

Assertions about Presentation and Disclosure - Occurrence, and rights and obligations

Inquire about accruals to ensure that they are properly disclosed.

12

Assertions about Presentation and Disclosure - Completeness

Complete financial reporting checklist to ensure that all financial statement disclosures related to payroll expense and related accruals have been made.

13

Assertions about Presentation and Disclosure - Classification and understandability

Review accrued payroll liabilities for proper classification between short-term and long-term liabilities. Read footnotes to ensure that required disclosures are understandable.

14

Assertions about Presentation and Disclosure - Accuracy and valuation

Review benefit contracts for proper disclosure of pension and post retirement benefits. Read footnotes and other information to ensure that the information is accurate and properly presented at the appropriate amounts.