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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
You are an internal audit manager working at BooksU 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
activitiesprocedures 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 BooksU Ltd
d Conducted a walkthrough 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.
List the documentation that the internal auditors would need to obtain as
background information to gain an understanding of the upcoming internal
audit.
For each of the activities above af identify the step within the planning stage that was performed
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