Auditing & Assurance Services: A Systematic Approach (Irwin Accounting)
10th Edition
ISBN: 9780077732509
Author: William F Messier Jr, Steven M. Glover Associate Professor, Douglas F. Prawitt Associate Professor
Publisher: McGraw-Hill Education
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Chapter 12, Problem 12.27P
A
To determine
Introduction: The payroll audit is conducted by an auditor in order to be sure about the accuracy in the processes of payroll and to identify the reasons for overstatement or understatement if there is any misstatement in the payroll of the company.
To describe: The verification of the information in the payroll input form.
B
To determine
Introduction: The
To describe: The audit procedures that J should follow to examine the November payroll register.
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As the internal auditor for Permalite Products, you have been asked to document the company's payroll processing system. Based on your documentation, Permalite hopes to develop a plan for revising the current system to eliminate unnecessary delays in pay cheque processing. The head payroll clerk explained the system: The payroll processing system at Permalite Products is fairly simple. Time data are recorded in each department using time cards and clocks. It is annoying, however, when people forget to punch out at night, and they have to record their time by hand. At the end of the period, their payroll clerks enter the time card data into a payroll file for processing. The clerks are pretty good—though they have had to make a number of corrections when they mess up the data entry.
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Holly employees use a time clock in an unsupervised area to record their time on the job. The timekeeping clerk tries to monitor the process but is often distracted by other duties. Every Friday, the shop foremen collect the time cards for their subordinates, review and approve them, and deliver them to the payroll clerk.
The payroll clerk uses a stand-alone PC to record the employee earnings in the employee records and print a hard-copy payroll register. The payroll clerk sends one copy of the payroll register to the accounting department. The clerk then files the time cards and a copy of the payroll register in the payroll department.
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Chapter 12 Solutions
Auditing & Assurance Services: A Systematic Approach (Irwin Accounting)
Ch. 12 - Prob. 12.1RQCh. 12 - Prob. 12.2RQCh. 12 - Prob. 12.3RQCh. 12 - Prob. 12.4RQCh. 12 - Prob. 12.5RQCh. 12 - Prob. 12.6RQCh. 12 - Prob. 12.7RQCh. 12 - Prob. 12.8RQCh. 12 - Prob. 12.9RQCh. 12 - Prob. 12.10RQ
Ch. 12 - Prob. 12.11RQCh. 12 - Prob. 12.12RQCh. 12 - Prob. 12.13RQCh. 12 - Prob. 12.14MCQCh. 12 - Prob. 12.15MCQCh. 12 - Prob. 12.16MCQCh. 12 - Prob. 12.17MCQCh. 12 - Prob. 12.18MCQCh. 12 - Prob. 12.19MCQCh. 12 - Prob. 12.20MCQCh. 12 - Prob. 12.21MCQCh. 12 - Prob. 12.22MCQCh. 12 - Prob. 12.23MCQCh. 12 - Prob. 12.24PCh. 12 - Prob. 12.25PCh. 12 - Prob. 12.26PCh. 12 - Prob. 12.27P
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