hhtan
29-11-08, 01:57 PM
HI Friends,
I have a list of test of controls and substantive test for payroll but I have problems in explaining the reasons for each test. Can anyone kindly help me with it?
The list of the test of control are:
i) test a sample of the timesheets and confirm that they have been properly authorised.
ii) test authorisation for amendments to salaries paid by reference to personnel records.
iii) examine for evidence of checking of the salaries calculations.
iv) test a sample of amendments for accuracy of implementation.
v) perform analytical review on the timesheets and compare on a month by month basis to identify any unexpected varinaces and then investigate those varinces.
vi) review salaries reconciliation.
vii) review any salaries system work undertaken by internal audit.
The list of the substantives test are:
i) test a sample of the timesheets to ensure that the totals are correct.
ii) test a sample of personnel records to ensure salary amounts are correct and properly authorised.
iii) test a sample of personnel records to ensure that starters and leavers are acuurately processed and the correct amount is paid to them at the correct time.
iv) select a sample of payrolls during the year and test actual employees.
v) select a sample of payrolls during the year and test personnel records to ensure that the rates of pay are authorised and there is evidence of their existence.
vi) select a sample of payrolls during the year and test postings to the nominal ledger.
vii) select a sample of payrolls during the year and test that they reconcile to the payroll control account in the nominal ledger.
Thanks.
I have a list of test of controls and substantive test for payroll but I have problems in explaining the reasons for each test. Can anyone kindly help me with it?
The list of the test of control are:
i) test a sample of the timesheets and confirm that they have been properly authorised.
ii) test authorisation for amendments to salaries paid by reference to personnel records.
iii) examine for evidence of checking of the salaries calculations.
iv) test a sample of amendments for accuracy of implementation.
v) perform analytical review on the timesheets and compare on a month by month basis to identify any unexpected varinaces and then investigate those varinces.
vi) review salaries reconciliation.
vii) review any salaries system work undertaken by internal audit.
The list of the substantives test are:
i) test a sample of the timesheets to ensure that the totals are correct.
ii) test a sample of personnel records to ensure salary amounts are correct and properly authorised.
iii) test a sample of personnel records to ensure that starters and leavers are acuurately processed and the correct amount is paid to them at the correct time.
iv) select a sample of payrolls during the year and test actual employees.
v) select a sample of payrolls during the year and test personnel records to ensure that the rates of pay are authorised and there is evidence of their existence.
vi) select a sample of payrolls during the year and test postings to the nominal ledger.
vii) select a sample of payrolls during the year and test that they reconcile to the payroll control account in the nominal ledger.
Thanks.