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
- Difference between Date of Payment and Date of Deduction?
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Unregistered suppliers utility
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- ITR 4 and Bank transactions
- Bank details not Visible on Traces Portal
- Taxability of Partnership firm for FY 2025-26
- Need Professional Opinion - AY 2012-13 Old Demand & AY 2026-27 Refund Adjustment
- Cash balance limit and property purchases limit
- EXPORT COMMERCIAL INVOICE HSN CODE
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
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
