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List the Audit tests for salaries and wages

List the Audit tests for salaries and wages

Answers

Wilfred
•• Test the internal control system of payment of wages. Check if there is possibility of this system detecting ghost or dummy workers or any similar fraud.
•• Check the procedure of employment and dismissal of employees, which should be authorized by a responsible officer.
•• Verify that there is proper recording of wages.
•• For time basis check time records.
•• Check authorization of overtime.
•• Verify authority for deductions and ensure proper recording.
•• Check castings of wages.
•• Ensure all stages of preparation of payment of wages are properly authorized.
•• Check total of wages paid to control account.
•• Test a number of entries of payments to employees and ensure that they were received by employees.
•• Reconcile signature of original employment to that signed on receipt of the wages
Wilfykil answered the question on April 12, 2019 at 05:52

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