Describe a walk-through of the payroll transaction flow from hiring authorization to payroll cheque disbursement. What document copies would be collected?
Answer to relevant QuestionsWhat features of a payroll system can be expected to prevent or detect (a) Payment to a fictitious employee? (b) Omission of payment to an employee?Why is it unwise for an auditor to stand by the plant gate and time clock to observe employees checking in for work shifts? What production documentation supports the valuation of manufactured finished goods inventory? Is there anything wrong with auditors helping auditees obtain bank loans to pay their accounting firm’s fees? The diagram in Exhibit EP13-11 describes several payroll test of control procedures. It shows the direction of the tests, leading from samples of time cards, payrolls, and cumulative year-to-date earnings records to blank ...
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