20 January 2010
The various points to be seen during verfication of Audit of pay roll of a company are:- • Study the accounting system and internal controls. • Check the arithmetical accuracy of the payroll i.e. additions, subtractions etc. • Examine the primary employee data-name, wage rate, attendance, etc. with reference to records maintained by personnel department the time keeping department. • Examine the reipts/acknowledgements by employees. • Trace the recoveries of loans and advances to the relevant advance register. • Obtain a list of employees who retired or otherwise left the services of the enterprise and check that they have not been included in the payroll. • Ensure that the rate or amount of wages and salaries is in accordance with legal regulations or contractual requirements. • Ensure that no dummy workers are included in the pay-roll summary. • Compute the ratio of total wage bill for the year to the wage bill of the previous year. • Check the statements for unclaimed wages and ensure that the said amount has been deposited into a bank in a separate account by referring to counterfoil of pay in slip.
CAclubindia
