One of the partners of Bloom & Associates is particularly concerned by the internal controls for management bonuses. You conducted a meeting with the client to inquire about payroll procedures and established professional standards. Based on the meeting minutes, the following three internal controls for payroll at Red Earth Pty Ltd can be identified: 1. Payroll is prepared by the payroll assistant and authorised by the accountant. This ensures that there is a check and balance in place, preventing any unauthorised changes or errors. 2. Changes to employee profiles and pay rates require a written and signed request from the Payroll Manager. Employees are not authorized to change their own profile. This control prevents unauthorised access and changes to sensitive payroll information. 3. All processed payroll is logged through MYOB and is password-protected. This control ensures that all payroll transactions are recorded and protected from unauthorised access.

Question . What other evidence you will obtain to evaluate the accuracy of management bonuses and which testing procedure you will use? Make sure that it should be in accordance with the criteria identified in the audit methodology.(risk-based audit approach)

One of the partners of Bloom & Associates is particularly concerned by the internal controls for management bonuses. You conducted a meeting with the client to inquire about payroll procedures and established professional standards. Based on the meeting minutes, the following three internal controls for payroll at Red Earth Pty Ltd can be identified: 1. Payroll is prepared by the payroll assistant and authorised by the accountant. This ensures that there is a check and balance in place, preventing any unauthorised changes or errors. 2. Changes to employee profiles and pay rates require a written and signed request from the Payroll Manager. Employees are not authorized to change their own profile. This control prevents unauthorised access and changes to sensitive payroll information. 3. All processed payroll is logged through MYOB and is password-protected. This control ensures that all payroll transactions are recorded and protected from unauthorised access.

Question :What other evidence you will obtain to evaluate the accuracy of management bonuses and which testing procedure you will use? Make sure that it should be in accordance with the criteria identified in the audit methodology.(risk-based audit approach) following is taken from ATO webiste australia