CA Vitrag S Modi (Chartered Accountant) (186 Points)
28 May 2010Hi,
I am doing system audit. I want to know how I should work to find out any ghost employee in the company like following,
- The company has atleast 1500 employees.
- The company is using Punch Card system for the Attendance of employees.
- All the payment for salary s done through bank only.
Bhavik Davda
(Proprietor)
(238 Points)
Replied 02 June 2010
1. Logically select base of more than 100 people as sample...( if u are bit doubted abt the ghost employee presence)
2. Throughly follow the payroll process- payment of various statutory dues like PF, PT, ESI, specially bonus..
If having a time.. find out on diwali how much Qty of gift has been purchased... they must have not purchased gift for the ghost employee- you will be able to find if there is huge amt. of ghost employee even hint will be available- then u gonna rock in dept.
with regards,
Bhavik
CA Mukul Mittal
(CA in practice)
(384 Points)
Replied 03 June 2010
agreed
u should select those of high cedre and atleast 150 from others
check appointment letters, leave records, pay rolls, attendence register etc.
CA SURENDRA KUMAR RAKHECHA
(Practising CA at Surat)
(26263 Points)
Replied 04 July 2010
This may also help in addition to above answers :
1. Ask for bifurcation of duties of various persons at various departments to how many persons are needed to employ.
2. Logically decide how many persons are required pere machine if labors are employed.
3. Ask the above question to Engineer (he is generally not aware of accounting jugglery)
4. Specially check those employees records whose attendance is full (with no leaves).
5. Approach the HRD officer and Recruitment Officer when the employees were last appointed. Ask verbally first and then check it with records.
6. Other points are to be taken on the basis of practical application of Auditing Principles.
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