This payroll auditing CPE course clarifies for the auditor every action needed to audit payroll. It describes the characteristics of payroll from an auditing perspective, and then goes on to describe the steps required to audit every aspect of payroll. Background information about ghost employees and the capitalization of payroll costs are also included, as well as descriptions of the controls that clients typically integrate into their payroll systems.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Recognize the situations in which a ghost employee is more likely to be created within a payroll system.
Specify the situations in which inherent risk is considered to be relatively high.
Identify the types of activities that can be considered substantive procedures.
Describe the different types of controls that a client may install for its payroll system.
Major Topics
Auditor Objectives
Auditing Characteristics of Payroll
Capitalization of Labor Costs
Ghost Employees
Payroll Ending Balance
The Payroll Register
Auditor Questions
Auditing Activities
Precompute Pay
Trace to General Ledger
Conduct Analytical Procedures
Timing of Auditing Activities
