You are the audit manager on the audit of Playground (Pty) Ltd (Playground), a manufacturer of self- assembly playground equipment. You are currently busy with the audit for the year ended 31 December. The preliminary work performed by one of the audit trainees involved the documentation of the client's wages system for its 40 wage employees. After evaluating the system description and following discussions with the trainee, you decided that a substantive-based audit approach with limited reliance being placed on substantive analytical procedures would be the most appropriate. 

Documentation of the wages system of Playground: All potential employees are interviewed by management, after which reference checks are performed. As a result of the number of high-profile credential frauds published in the media recently, the company has over the past few months placed greater emphasis on verifying the credentials of each applicant. Once an offer of employment has been made, both the personnel manager and the new employee sign a letter of appointment, which is filed in the personnel department. Annual performance evaluations are performed by the production supervisor and the production manager. These are used in order to determine annual increases, which are communicated to the personnel department. After the personnel manager has approved them, the wage increase letters are filed in the personnel department. Most employees, who are required to wear red overalls while on duty, work in the factory. In order to ensure that no injuries occur during working hours, all work-based activities are monitored through the deployment of CCTV cameras. No employee is required to work overtime, but may do so voluntarily. At the beginning of each week, the wages clerk prepares the wage journal, calculating the gross wage of each employee by multiplying the hours worked - information on which is gleaned from the computerised clock-card system - by the appropriate hourly rate. At the same time, deductions for income tax and medical aid contributions are made. Both the personnel manager and the financial manager sign the weekly net payment schedule that is sent to the bank. A copy of the schedule is filed in the personnel department. The company uses a wages control account in order to control the payment of wages, which is made by the bank directly into each employee's bank account at the end of each week. 

• REQUIRED :
• Formulate the substantive procedures that you would perform on the wage expense of Playground. You are not required to address salaries or the directors' remuneration.