Following are some routine procedures for the audit of payroll (discussed in the Appendix). For each procedure, (1) state whether it is a test of controls or a substantive test, (2) state which management assertion the procedure is designed to fulfill, and (3) state the type of evidence used in the procedure.

a. Observe employees clocking in for a few shifts.

b. Sample some payroll check stubs and manually calculate the withholding allowances for taxes.

c. Sample some time cards for proper management approvals.

d. Enter some dummy data into the automated payroll system to ensure proper withholding is done and proper accruals are made.

e. Compare a sample of employees from the master payroll file with actual personnel files.

f. Trace footings of payroll journals to entries in general ledger.

g. Estimate accruals for end-of-period salaries payable using production and sales data.

h. Study minutes of board of directors' meetings for evidence of new executive compensation plans.