PAY ROLL PROCESS
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
06 January 2010
I want to know the verification procedure to be followed while doing audit of PAY ROLL of a company?
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.
regards,
CA Jatin Bansal
CHANDIGARH
09814622848
• 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.
regards,
CA Jatin Bansal
CHANDIGARH
09814622848
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- PPF interest-As Exempt Income disclosure
- Section 194JA & JB Income which ITR Form to use
- Scrutiny and reopening of past returns
- Under construction property in ITR
- Pass word to open justification report for Q1 for FY 2026-27
- Building tax payment deduction in rental Income
- Booth for sales promotion
- Upload Level ValidationITR3Category of Defect B/D
- Rental income of jointly held property
- TAX AUDIT QUESTION
- VALUATION OF PRIVATE LIMITED COMPANY SHARES
- LIABILITY ADJUSTMENT
- Capital Gains on sale of residential flat
- Accounting with Claude
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
