The following audit procedures are typical of those found in auditing the payroll and personnel cycle.

1. Examine evidence of double-checking payroll wage rates and overtime calculations by an independent person.

2. Obtain a schedule of all payroll liabilities and trace to the general ledger.

3. Select a sample of 20 cancelled payroll cheques and account for the numerical sequence.

4. Foot and cross-foot the payroll journal using audit software, and trace the totals to the general ledger.

5. For accrued expenses, examine subsequent payments and supporting documents such as employee benefits remittance forms and receipts received.

6. Select a sample of 20 cancelled payroll cheques, and trace to the payroll journal for name, date, and amounts.

7. Compute direct labour, indirect labour, and commissions as a percentage of net sales, and compare with prior years.

8. Examine owner approval of rates of pay and withholdings.

9. Compute employment insurance expense as a percent¬ age of total wages and salaries.

10. Discuss with management any payroll liabilities at the last engagement date that are not provided for currently.

11. Scan journals for all periods for unusual transactions to determine if they are recorded properly.

12. Select a sample of 40 entries in the payroll journal, and trace each to an approved time card.

Required

a. Select the type of test for each audit procedure from the following:

(1) Test of controls

(2) Analytical procedure

(3) Test of details of balances

b. For each test of control, identify the applicable transac¬ tion-related audit objective(s).

c. For each test of details of balances, identify the applicable balance-related audit objective(s).