Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Following are some of the audit procedures of payroll transactions (Each procedure is to be done on a sample basis) a)Reconcile the monthly payroll total

Following are some of the audit procedures of payroll transactions (Each procedure is to be done on a sample basis)

a)Reconcile the monthly payroll total for direct manufacturing labour with labour cost distribution.

b)Examine the timecard for the approval of a supervisor.

c)Recompute hours on the timecards and compare the total with the total hours for which each employee has been paid.

d)Compare the employee name, date, cheque number and amounts on canceled cheques with the payroll journal.

e)Trace the hours from the employee timecards to job tickets to make sure the total reconciles, and trace each job ticket to the job-cost record.

f)Account for a sequence of payroll cheques in the payroll account.

g)Select employees from the personnel file who have been terminated and determine whether their termination pay was in accordance with the union contract. As part of this procedure, examine two subsequent periods to determine whether the terminated employee is still being paid.

Required:

i.Identify whether each of the procedures is primarily a test of control or a substantive test.

ii.Explain briefly the objective(s) of each of the audit procedures.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Cost Accounting

Authors: William N. Lanen, Shannon Anderson, Michael W Maher

6th edition

1259969479, 1259565408, 978-1259969478

More Books

Students also viewed these Accounting questions

Question

The quality of the argumentation

Answered: 1 week ago