Employees are the most important asset for any business, but also the biggest expense. As such, employee costs will be a material item on most audit files, making It imperative that the auditor ensures sufficient appropriate evidence was obtained.
In this session, we will discuss the procedures to be performed and consider a practical working paper approach to payroll testing.
• Agreeing the expense to underlying records
o Reconcile GL to payroll reports
o Agree to Bank statement
Payment vs statutory deductions
• Analytic procedures
• Selecting a sample for detail testing
o Population
o Sample size
o Source – Payslip vs contract
• Directors emoluments
o Disclosures in terms of Companies Act
Auditors, First year SAICA Trainees, Second year SAICA trainees,Third year SAICA trainees, Fourth year SAICA trainees, and Fifth year SAICA trainees
