) The following audit procedures are typical of thosefound in auditing the payroll and personnel cycle:1. Obtain a schedule of all payroll liabilities and trace to the general ledger.2. Scan journals for all periods for unusual transactions to determine whether they arerecorded correctly.3. Select a sample of 40 entries in the payroll journal and trace each to an approvedtime card.4. Discuss with management any payroll liabilities recorded in the prior year that arenot provided for in the current period.5. Examine evidence that payroll hours and wage rates are verified by an independentperson.6. Select a sample of 20 cancelled payroll checks and account for the numerical sequence.7. Review board of director meeting minutes to verify the salary for the chief executiveofficer.8. Compute payroll tax expense as a percentage of total wages, salaries, and commissions.9. Select a sample of 20 payroll payments and trace to payroll journal entries for name,date, and amounts.10. Examine owner approval of rates of pay and withholdings.a. Select the type of test for each audit procedure from the following:(1) Test of control (3) Analytical procedure(2) Substantive test of transactions (4) Test of details of balances
) The following
found in auditing the payroll and personnel cycle:
1. Obtain a schedule of all payroll liabilities and trace to the general ledger.
2. Scan journals for all periods for unusual transactions to determine whether they are
recorded correctly.
3. Select a sample of 40 entries in the payroll journal and trace each to an approved
time card.
4. Discuss with management any payroll liabilities recorded in the prior year that are
not provided for in the current period.
5. Examine evidence that payroll hours and wage rates are verified by an independent
person.
6. Select a sample of 20 cancelled payroll checks and account for the numerical sequence.
7. Review board of director meeting minutes to verify the salary for the chief executive
officer.
8. Compute payroll tax expense as a percentage of total wages, salaries, and commissions.
9. Select a sample of 20 payroll payments and trace to payroll
date, and amounts.
10. Examine owner approval of rates of pay and withholdings.
a. Select the type of test for each audit procedure from the following:
(1) Test of control (3) Analytical procedure
(2) Substantive test of transactions (4) Test of details of balances
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