Audit of the payroll and personnel cycle chapter 17 ©2003 prentice hall business publishing, auditing and assurance services 9/e, arens/elder/beasley 17 - 1 2 learning objective 1 identify the accounts and transactions in the payroll and personnel cycle. The overall objective in the audit of the payroll and personnel cycle is to evaluate whether the account balances affected by the cycle are fairly stated in accordance with generally accepted accounting principles ©2010 prentice hall business publishing, auditing 13/e, arens//elder/beasley. Audit of the payroll and personnel cycle chapter 18 learning objective 1 identify the accounts and transactions in the payroll and personnel cycle accounts and transactions in the payroll and personnel cycle the overall objective in the audit of the payroll.
Aims of the audit of payroll/personnel cycle evaluate whether the account balance affected by the cycle are fairly stated in accordance with gaap expenses are charged when employees are actually paid, rather than when labor costs are incurred. Ch15 audit of the payroll and personnel cycle - download as powerpoint presentation (ppt), pdf file (pdf), text file (txt) or view presentation slides online audit of the payroll and personnel cycle. Administrative personnel processes payroll is one of the largest expenses incurred by personnel services (ops) members, are paid a fixed gross amount for each payroll cycle unless the amount is altered this model assumes, absent any payroll action to and auditing state agencies payroll-related processes.
Auditing 13/eanalytical procedures for the payroll and analytical procedure possible misstatement personnel cycle compare commission expense misstatement of as a percentage of sales with commission expense previous years and commission liability compare payroll tax expense misstatement of payroll as a percentage of salaries and tax expense and. ©2012 prentice hall business publishing, auditing 14/e, arens/elder/beasley 20 - 3 the overall objective in the audit of the payroll and personnel cycle is to evaluate whether the account balances affected by the cycle are. Auditing payroll — an overview in many governments, nonprofits, and small businesses payroll exceeds fifty percent of total expenses consequently, it is often a significant transaction area. Payroll procedures may differ depending on corporate personnel and business requirements, according to the city of new york's office of the comptroller policies concerning permanent, full-time employees include pay period cutoff dates, pay dates and advance notice requirements before picking up checks in the payroll office. 4 fraud risks in recruitment and payroll fraud and fraud risks associated with recruitment are prevalent, and yet, are often overlooked by businesses there is a need to recruitment personnel are also responsible for processing payroll fraud risks arising from control-related weakness in service provider’s (payroll.
Payroll/personnel cycle description control objectives risks and audit procedures for the payroll cycleincludes overview of key controls standard (non-it) audit program comments 2013-12-16 15:48:16 -0500 posted by trbilling download this audit program is only available to basic subscribers. 71 medium discuss each of the following primary documents and records used in the (1) payment of payroll function, and (2) preparation of payroll tax returns and payment of taxes function in the payroll and personnel cycle: payroll check, w-2 form, and payroll tax returns. Chapter 9 audit of the payroll and personnel cycle 1 objectives 11 to describe the documents and records that are usually found in the payroll and personnel cycle 12 to state the general audit procedures for the test of internal controls of this cycle. Small business owners should audit payroll processing as part of regular business operations a good time frame for scheduling a payroll audit is at the end of each quarter of business. Master files should be audited each payroll period for changes, errors or discrepancies by a supervisor who does not prepare payroll cross-check between departments to confirm that personnel actions such as raises are authorized by human resources in writing, communicated to accounting and approved by management.
Review the personnel file and make sure each new employee has appropriate documentation according to the audit client’s human resources procedure and policy manual completeness: in the payroll process, understatement isn’t a major concern because most employees will notify employers if they don’t get a paycheck. Audit of the payroll and personnel cycle chapter 18 ©2008 prentice hall business publishing, auditing 12/e, arens/beasley/elder 18 - 1 learning objective 1 identify the accounts and transactions in the payroll and personnel cycle. Audit of the payroll process including internal controls and duties to be segregated.
Learning objectives after studying this chapter, students should be able to: identify the accounts and the classes of transactions in the acquisition and payment cycle. Payroll and personnel cycle transaction cycle that begins with the hiring of personnel, includes obtaining and accounting for services from the employees, and ends with payment to the employees for the services performed and to the government and other institutes for withheld and accrued payroll taxes and benefits. Payroll and business tax accounting chapter 1 – the need for payroll and personnel records fair labor standards act (flsa) or federal wage and hour law – a federal statute of the united states that was established in 1932 by senator hugo black.
Describe the related documents applicable to the payroll and personnel cycle 2 understand the assertions of auditing the payroll and personnel 3 determine and apply the internal controls in the payroll and personnel cycle 4 design tests of controls and assess related control risks over the payroll and personnel cycle. The state controller’s office audited the personnel and payroll cycle as part of our process of studying and evaluating the accounting and administrative controls of the california lottery for the biennial period ending december 31, 2007. Table of contents: this audit program for sap contains 48 tests designed to evaluate adequacy of the key configuration settings, monitoring techniques and access restriction mechanisms to sensitive transactions in sap r/3 the control framework covers the following components of the payroll and personnel process. Audit of payroll cycle enny angela loading unsubscribe from enny angela 21 auditing the sales cycle - duration: 13:04 executive finance 26,866 views 13:04.