Discuss tests of controls and substantive tests of transactions for the payroll and personnel cycle. How does this apply to your chosen organization?
Test of Control and Substantive Test of transaction in relates to Payroll and personal Cycle .
We used to follow Substantive Procedure in case of Payroll and personal cycle along with Control Risk assessment . Under substantive Test procedure , we used to cover following activities :
We also cover multiple Internal Control and Test of control
In any organization , Importance of payroll and processing cycle applicable for :
Under substantive test method , We need to review following activities :
While doing more in depth substantive testing , We need to cover below points :
Whole doing substantive procedure, we need to cover “Analytical process”termination o , comparative analysis , may be require to do budget vs Actual variance and review variance analysis track record
Most important step is in each filed we need to review accuracy , correctness , completeness of data , information , documentation , process flow and captured correctly in to financial
We need to ensure that company paid salary , wages only related to Existing employee as per record and employee were actually employed during the payroll period
Another important step to consider regarding Termination of employees. Need to ensure that termination pay in accordance with company Policy
In case of any unclaimed wages , need to determine whether an unclaimed cheque is fraud.
Impact On Organization – Every Organization must have separate HR department to keep record of all active employee . In Attendance register , HR team has to keep record of all clock in and clock out . Month end they used to get complete details of active employee and inform Payroll team to process the payment accordingly .
So in Organization , they do following process in terms of payroll and Personal matter :
Discuss tests of controls and substantive tests of transactions for the payroll and personnel cycle. How...
20-20 (Objectives 20-2, 20-3) Following are some of the tests of controls and substantive tests of transactions procedures often performed in the payroll and personnel cycle. 1. Reconcile the monthly payroll total for direct manufacturing labor with the labor cost distribution. 2. Examine the time card for the approval of a foreman. 3. Recompute hours on the time card and compare the total with the total hours for which the employee has been paid. 4. Perform a surprise payroll payoff...
The following questions concern internal controls in the payroll and personnel cycle. Choose the best response. a A factory foreman at Steblecki Ltd discharged an hourly worker but didn't notify the payroll department. The foreman then forged the worker's signature on time cards and, when giving out the cheques, diverted the payroll cheques drawn from the discharged worker to his own use. The most effective procedure for preventing this activity is to: (1) require written authorisation for all employees added...
Generalized audit software is useful for Tests of Controls Substantive Procedures No Yes Yes No No No Yes Yes
In this assignment, you will prepare a 2–3 page professional document that addresses the requirements specified in the case. InstructionsSpecifically you will be required to:Calculate the required ratios for all given years.Identify and explain high inherent risk assertions.Analyze and draw conclusions about the nature and extent of tests of controls.Analyze and draw conclusions about the nature, timing, and extent of substantive procedures.
Audit of the sales and collection cycle based on chapter 13 3. Understand internal control, and design and perform tests of controls and substantive test of transactions for sales 4. Understand internal control, and design and perform tests of controls and substantive test of transactions for cash receipts
Audit of the sales and collection cycle based on chapter 13 3. Understand internal control, and design and perform tests of controls and substantive test of transactions for sales 4. Understand internal...
Auditors should design the written audit plan so that: Multiple Choice substantive tests prior to the balance sheet date will be minimized. each account balance will be tested under either tests of controls or tests of transactions. the audit procedures selected will achieve specific audit objectives. all material transactions will be selected for substantive testing.
The following questions concern audit testing of the payroll and personnel cycle. Choose the best response. a A common aud it procedure in the audit of payroll transactions involves tracing selected items from the payroll journal to employee time cards that have been approved by supervisory personnel. This procedure is designed to provide evidence in support of the audit proposition that: (1) only proper employees worked and their pay was correctly computed (2) jobs on wh ich employees worked were...
Requirement a. Identify the phase of the audit in which each activity occurs. Phase of Audit Set acceptable audit risk and decide preliminary judgment about materiality 1. and performance materiality Understand internal control and assess 2. control risk. I. Plan and Design an Audit Approach Perform substantive analytical 3. procedures for accounts payable. II. Perform Tests of Controls and Substantive Tests of Transactions JII. Perform Substantive Analytical Procedures and Tests of Details of Balances 4. Confirm accounts payable. IV. Complete...
Explain the relationship between the payroll and personnel cycle and inventory valuation.
List below 3 specific substantive tests for the revenue cycle: 1. 2. 3.