The following audit procedures are typical of those found in auditing the payroll and personnel cycle:
1. Scan journals for all periods for unusual transactions to determine whether they are recorded correctly.
2. Select a sample of 40 entries in the payroll journal and trace each to an approved time card.
3. Discuss with management any payroll liabilities recorded in the prior year that are not provided for in the current period.
4. Examine evidence that payroll hours and wage rates are verified by an independent person.
5. Obtain a schedule of all payroll liabilities and trace to the general ledger.
6. Select a sample of 20 cancelled payroll checks and account for the numerical sequence.
7. Foot and cross-foot the payroll journal for two periods and trace totals to the general ledger.
8. Compute payroll tax expense as a percentage of total wages, salaries, and commissions.
9. Select a sample of 20 payroll payments and trace to payroll journal entries for name, date, and amounts.
10. Compute direct labor, indirect labor, and commissions as a percentage of net sales and compare with prior years.
11. Examine owner approval of rates of pay and withholdings.
12. For payroll liabilities, examine subsequent cash disbursements and supporting documents such as payroll tax returns, depository receipts, and tax receipts.

Required
a. Select the type of test for each audit procedure from the following:
(1) Test of control
(2) Substantive test of transactions
(3) Analytical procedure
(4) Test of details of balances
b. For each test of control or substantive test of transactions, identify the applicable transaction-related audit objective(s).
c. For each test of details of balances, identify the applicable balance-related audit objective(s).