Payroll Audit Procedures:

Testing Payroll Controls: Auditors test the effectiveness of internal controls over the payroll process to ensure accuracy and completeness.

Review of Payroll Records: Examining payroll records, including timesheets, pay rates, and deductions, to verify the accuracy of payroll calculations.

Confirmation with Employees: Confirming payroll amounts with employees to verify the accuracy of recorded payroll transactions.

Compliance with Regulations: Ensuring compliance with labor laws and regulations regarding minimum wage, overtime, and payroll taxes.

Verification of Payroll Taxes: Verifying the accuracy and completeness of payroll tax calculations and payments.

Employee Benefits Audit Procedures:

Review of Plan Documents: Reviewing plan documents and agreements to ensure compliance with regulatory requirements and company policies.

Testing Plan Controls: Testing controls over employee benefit plans to ensure the accuracy and completeness of contributions, distributions, and disclosures.

Confirmation with Plan Trustees: Confirming plan balances and transactions with plan trustees or administrators to verify the accuracy of recorded amounts.

Evaluation of Actuarial Assumptions: Assessing the reasonableness of actuarial assumptions used to calculate employee benefit obligations, such as pension liabilities.

Compliance Testing: Performing compliance testing to ensure adherence to regulatory requirements, such as ERISA $($Employee Retirement Income Security Act$)$ compliance for retirement plans.

Objective Type Question:

Based on the information provided, which audit procedure is primarily focused on confirming plan balances and transactions with plan trustees to verify the accuracy of recorded amounts?

A$)$ Review of Plan Documents

B$)$ Testing Plan Controls

C$)$ Confirmation with Employees

D$)$ Confirmation with Plan Trustees