Summary
Summary Payroll substantive procedures.
- Course
- Institution
- Book
This document provides a summary of the substantive procedures for each and every assertion affecting the payroll cycle.
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
Expenditure cycle substantive procedures.
-
Revenue cycle substantive procedures.
-
AUI2601 Assignment 1 Semester 1 2023
Seller
Follow
thandoedube
Content preview
Payroll CycleAssertion Payroll (COT)
Accuracy Confirm that the gross salary used in the payroll is
authorised in terms of company’s remuneration policies
and signed salary notifications in the employee’s
personnel file.
Trace any additional (bonuses) amounts paid to the
employee to source documentation and inspect the
source documentation for a valid authorising signature,
e.g. the financial director approving the payment of an
incentive bonus.
Inspect any overtime reports signed by the foreman or
production manager for the period selected, and confirm
that the rate used for overtime complied with company
policy and labour requirements, e.g. overtime rate is
normal time and a half.
Compare all deductions, e.g. PAYE, pension, medical aid,
to the appropriate rules to confirm that the correct
amounts were deducted.
Test the casts and the arithmetical accuracy of the payroll
as appropriate
Trace amounts posted from the selected payroll to the
relevant accounts in the general ledger.
Procedures to confirm that employees on the payroll are not fictitious (Occurrence assertion)
1. Inspect the documentation in the employee’s personnel file, e.g. signed employment
contract, identity details (identity numbers can be verified on the national identity number
database), tax registration forms, etc. and agree it to the payroll.
2. Perform a positive (physical) identification of the employee where possible.
3. Enquire of senior personnel to confirm (in writing) that specified individuals are employed in
their section or division.
4. Inspect returns to outside entities for the inclusion of employees selected in the sample, e.g.
PAYE reconciliations submitted to SARS, or medical aid contribution returns.
5. Use audit software to scan the employee master file for “error conditions” which may
indicate fictitious employees, e.g.
Duplicated or missing identity numbers
Duplicated or missing tax reference numbers
Duplicated bank accounts
Duplicated staff employee numbers.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller thandoedube. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R55,72. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
73918 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now