PAY ROLL PROCESS
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
06 January 2010
I want to know the verification procedure to be followed while doing audit of PAY ROLL of a company?
20 January 2010
The various points to be seen during verfication of Audit of pay roll of a company are:-
• Study the accounting system and internal controls.
• Check the arithmetical accuracy of the payroll i.e. additions, subtractions etc.
• Examine the primary employee data-name, wage rate, attendance, etc. with reference to records maintained by personnel department the time keeping department.
• Examine the reipts/acknowledgements
by employees.
• Trace the recoveries of loans and advances to the relevant advance register.
• Obtain a list of employees who retired or otherwise left the services of the enterprise and check that they have not been included in the payroll.
• Ensure that the rate or amount of wages and salaries is in accordance with legal regulations or contractual requirements.
• Ensure that no dummy workers are included in the pay-roll summary.
• Compute the ratio of total wage bill for the year to the wage bill of the previous year.
• Check the statements for unclaimed wages and ensure that the said amount has been deposited into a bank in a separate account by referring to counterfoil of pay in slip.
regards,
CA Jatin Bansal
CHANDIGARH
09814622848
• Study the accounting system and internal controls.
• Check the arithmetical accuracy of the payroll i.e. additions, subtractions etc.
• Examine the primary employee data-name, wage rate, attendance, etc. with reference to records maintained by personnel department the time keeping department.
• Examine the reipts/acknowledgements
by employees.
• Trace the recoveries of loans and advances to the relevant advance register.
• Obtain a list of employees who retired or otherwise left the services of the enterprise and check that they have not been included in the payroll.
• Ensure that the rate or amount of wages and salaries is in accordance with legal regulations or contractual requirements.
• Ensure that no dummy workers are included in the pay-roll summary.
• Compute the ratio of total wage bill for the year to the wage bill of the previous year.
• Check the statements for unclaimed wages and ensure that the said amount has been deposited into a bank in a separate account by referring to counterfoil of pay in slip.
regards,
CA Jatin Bansal
CHANDIGARH
09814622848
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