Anna Mourani has the task of designing the audit program for the payroll area. There have been
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Anna Mourani has the task of designing the audit program for the payroll area. There have been no recent changes to the payroll system, or its interface with the general ledger. Among other tests, Anna is considering using the following analytical procedures to gather evidence:
1. Compare payroll tax expenses with the annual payroll times the statutory tax rates.
2. Compare the relationship between direct labour costs and number of employees with prior periods.
Required
Discuss the type of evidence that would be obtained from each of the procedures.
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Related Book For
Auditing A Practical Approach
ISBN: 978-1118849415
2nd Canadian edition
Authors: Fiona Campbell, Robyn Moroney, Jane Hamilton, Valerie Warren
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