Payroll

NotesQuizCBE

The control objectives for the payroll cycle are:

as follows:

  1. Only work done is paid for

  2. Pay is accurately calculated

  3. Pay is correctly made

  4. Pay is authorised

  5. Deductions are correctly calculated and paid

Diagram Diagram

Tests of Control - Payroll Cycle

These will potentially include:

  1. A sample of wages and salaries should be re-performed

  2. The calculation will agree with authorised pay rates and timesheets

  3. Test sample of timesheets for authorisation (esp. overtime)

  4. Attend a cash pay out looking for two people present & one wage per person

  5. Review wages reconciliation and ensure done regularly

  6. Ensure changes to payroll are authorised

  7. Check reasonableness of payroll deductions and ensure authorised

  8. Test controls over unclaimed wages

NotesQuizCBE