The company prepares a monthly payroll and pays the salaries and wages of its employees. The company has regular registry files for each one of its employees. The company carries out all the processes related to its employees in accordance with the personnel and payroll procedures.

There is a written payroll procedure in the company.

All recruitments and dismissals are subject to the approval of the relevant department manager and general manager.

Human Researches Manager and General Manager approve the salaries or wages at recruitment.

General Manager approves salary increases and increase offers.

There is no Collective agreement with any Labor Union.

Company keeps the records for paid annual leaves.

Company has a system that keeps the actual working hours.

Overtimes are approved by Department Managers.

There are necessary and appropriate warning signs in the working places.

Company has a system that keeps working hours of related work orders or production time spent on.

If there is a personnel leave or dismissal from the company , a release get signed and received from personnel.

Severance pay calculations are made by Human Researches Department.

Salary and wages are paid through bank accounts after accounting department’s approval.

Narrative.

There is an internal control conducted by internal audit Department in order to give assurance and advisory to Senior Management and Board of Directors HR Department performs all HR processes in line with the personnel procedures exist.

Findings:

All recruitments and dissmissals files are reviewed and analysed and there is no unsuitability.

There are two employee of which their salaries are not approved by General Manager at recruitment.

All salaries and wages are approved by General Manager for the period audited.

All annual leaves are checked and there are five people annual leaves records are inappropriate and missing.

The files of working hours are checked and analysed and irregular arrivals are detected.

Some overtimes are found which are not approved by Department Managers

Auditors detected two white -collar dissmissal of which there is no release document received.

All payments are done through bank accounts detected.

Requirement:

Please prepare an audit report defining;

A) Project purpose, scope and methodology

B) Executive summary

C) Audit results