You are an internal audit manager working at Books$4$U Ltd and have been assigned to lead

the audit team for the assurance engagement of the payroll function.

The audit team is currently busy with the planning stage of the engagement, with the following

activities$/$procedures having been performed:

a$)$ Studied the previous internal audit report on the payroll function.

b$)$ Identified $$overpayment to employee$$ as an area of high risk that needs specific attention.

c$)$ Obtained information on the characteristics of the services provided by Books$4$U Ltd$.$

d$)$ Conducted a walk$-$through test of the payroll function starting from the payroll preparation

up to payroll payment, deductions payments and recording.

e$)$ Held the initial meeting with the payroll manager, where the provisional timelines for the

audit were communicated and documents required for obtaining background information

$($payroll policies and procedures$)$ were requested.

f$)$ Compiled a budget for the number of hours and other costs $($auditors$,$ technology costs,

travel costs etc$)$ required for the audit.

$2\mathrm{.}1.$ List the documentation that the internal auditors would need to obtain as

background information to gain an understanding of the upcoming internal

audit.

$2\mathrm{.}2.$ For each of the activities above $($a$-$f$),$ identify the step within the planning stage that was performed