对工资单和人员周期的审计Audit of the Payroll and Personnel Cycle

1、Audit of the Payrolland Personnel CycleChapter 17Accounts and Transactions in thePayroll and Personnel CycleThe overall objective in the audit of the payrolland personnel cycle is to evaluate whether theaccount balances affected by the cycle arefairly stated in accordance with generallyaccepted acco

2、unting principles.Accounts and Transactions in thePayroll and Personnel Cycle Accrued Wages, Salaries, Bonuses, and CommissionsPaymentBeginningbalanceEarned wages,salaries, etc.Ending balanceCash in BankPaymentfor salariesPayment forpayroll taxesDirect LaborWithheld Income Taxes and Other Deductions

3、PaymentBeginningbalancePayroll withholdingEnding balanceAccounts and Transactions in thePayroll and Personnel CycleWithheld Income Taxes and Other DeductionsPaymentBeginningbalancePayroll withholdingEnding balanceAccrued Payroll Tax ExpensePaymentBeginning balancePayroll tax expenseEnding balanceCas

4、h in BankPaymentfor salariesPayment forpayroll taxesPayroll Tax ExpenseAccounts and Transactions in thePayroll and Personnel CycleSeparate operating accounts for payroll alsonormally include officers salaries and bonuses,office salaries, sales salaries and commissions,and indirect manufacturing labo

5、r.Accounts and Transactions in thePayroll and Personnel CycleThese accounts have the same relationshipto accrued wages and withheld taxes andother deductions that is shown for direct labor.Business Functions in the Cycle andRelated Documents and RecordsThe payroll and personnel cycle begins withthe

6、hiring of personnel and ends with paymentto the employees for the services performedand to the government and other institutionsfor the withheld and accrued payroll taxesand benefits.Personnel and EmploymentPersonnel recordsDeduction authorization formRate authorization formTimekeeping and Payroll P

7、reparationTime CardJob Time TicketPayroll Transaction FilePayroll JournalPayroll Master FilePayment of PayrollPayroll checkPayroll bank account reconciliationPreparation of Payroll Tax Returns and Payment of TaxesW-2 FormPayroll Tax ReturnsMethodology for Designing Tests ofBalances Accounts Receivab

8、leUnderstand internal control payroll and personnel.Assess planned control risk payroll and personnel.Evaluate cost-benefitof testing controls.Methodology for Designing Tests ofBalances Accounts ReceivableDesign tests of details ofcontrols and substantive testsof transactions for payrolland personne

9、l to meettransaction-relatedaudit objectives.Audit proceduresSample sizeItems to selectTimingUnderstand Internal Control Payroll and Personnel Cycle Adequate separation of duties Proper authorization Adequate documents and records Physical control over assets and records Independent checks on perfor

10、manceSegregation of DutiesHiring, firing, rate and benefit changes HR Authorization of time worked - supervisor Processing of payroll checksCustody of checks and distributionBank reconciliationControl Activities Separate personnel from payroll processing, -(cant hire or change rates) Controls over c

11、heck distributions for fictitious employees or paid after terminated.Double endorsements sign of possible fraudReview of payroll distribution reportsCorrect hours, rates, employees, job codesRestricted access to blank checksPayroll Tax Formsand PaymentsPayment of the payroll taxes withheldand other

12、withholdings on a timely basisPreparation of payroll tax formsInventory and FraudulentPayroll ConsiderationsRelationship between payrolland inventory valuationTests for nonexistent payrollMethodology for Designing Tests ofBalances Accounts ReceivableIdentify client business risksaffecting payroll li

13、ability accounts.Set tolerable misstatementand assess inherent riskfor payroll liability accounts.Assess control risk for thepayroll and personnel cycle.Methodology for Designing Tests ofBalances Accounts ReceivableDesign and perform tests ofcontrols and substantive testsof transactions for thepayro

14、ll and personnel cycle.Design and perform analyticalprocedures for thepayroll and personnel cycle.Methodology for Designing Tests ofBalances Accounts ReceivableDesign tests of details ofpayroll accounts balancesto satisfy balance-relatedaudit objectives.Audit proceduresSample sizeItems to selectTimi

15、ngAnalytical Procedures for the Payroll and Personnel CycleAnalytical ProcedurePossible MisstatementCompare payroll expenseMisstatement of payrollaccount balance with expense accountsprevious years.Compare direct labor as aMisstatement of directpercentage of sales withlabor and inventoryprevious yea

16、rs.Compare commissionMisstatement ofexpense as a percentage of commission expense andsales with previous mission liabilityAnalytical Procedures for the Payroll and Personnel CycleAnalytical ProcedurePossible MisstatementCompare payroll tax expenseMisstatement of payrollas a percentage of salaries an

17、dtax expense and payrollwages with previous years.tax liabilityCompare accrued payroll taxMisstatement of accruedaccounts with previous years.payroll taxes and payrolltax expenseTests of Details of Balancesfor Liability AccountsAmounts withheld from employees payAccrued salaries and wagesAccrued commissionsAccrued bonusesAccrued vacation pay, sick pay, or other benefitsAccrued payroll taxesTests of Details of Balancesfor Expense AccountsOfficers compensationCommissionsPayroll tax expenseTotal payrollContract laborTypes of Audit Tests for the Payroll and Personne