PAY ROLL PROCESS

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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?

Professional Careers Academy

Professional Careers Academy (Expert)
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20 January 2010 The various points to be seen during verfication of Audit of pay roll of a company are:-
â€¢ Study the accounting system and internal controls.
â€¢ Check the arithmetical accuracy of the payroll i.e. additions, subtractions etc.
â€¢ Examine the primary employee data-name, wage rate, attendance, etc. with reference to records maintained by personnel department the time keeping department.
â€¢ Examine the reipts/acknowledgements
by employees.
â€¢ Trace the recoveries of loans and advances to the relevant advance register.
â€¢ 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.
â€¢ Ensure that the rate or amount of wages and salaries is in accordance with legal regulations or contractual requirements.
â€¢ Ensure that no dummy workers are included in the pay-roll summary.
â€¢ Compute the ratio of total wage bill for the year to the wage bill of the previous year.
â€¢ 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

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