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Auditing Practice Assignment | Homework For You

In planning your audit of the payroll for the period ending 15 September 2017, you have established the following audit objectives:

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1. Audit Assertion – Accuracy; Occurrence: Produce a report showing the employee number, full name, work department, pay date, pay per period, and cheque number for each paid employee. Sort and subtotal this report by work department.

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2. Audit Assertion – Completeness; Posting & Summarisation: Produce a report, using the pay details in the employee master file and the payroll file, to check the totals for both files.

3. Audit Assertion – Occurrence: Produce a report that determines if any employees are being paid more than $3,000 pay per fortnight. The report will detail these employees with full details including their name, work department and job description and pay per period. Sort this report by work department.

4. Audit Assurance – Accuracy; Completeness: Produce a report showing the details of any employee that was not paid.

5. Audit Assurance – Completeness; Accuracy: Produce a report showing the pay details for any paid employee who is not on the employee master file.

6. Using ALL the issues that any report reveals, identify and briefly discuss any issues that suggest the possibility of fraud in payroll.

7. Recommend key audit tests that you would undertake to evaluate the internal controls relating to payroll expenses. Get Audit homework help today

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