Payroll Audit Program

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Payroll Audit Program Powered By Docstoc
					Internal Audit Department
Audit Program for Payroll
The scope and purpose of the audit is to gain comfort over the control and transactions
surrounding compensation and benefits.

Audit Procedures                                        Done by      Date    Workpaper

1.     Obtain the July Payroll registers for
       domestic employees and make a
       selection of 10% of the employees by
       selecting every 10th employee. For the
       employees selected, obtain all of the
       detail pay slips for every payroll from
       January through July, excluding any
       expense pays and test the following:

       a.     Regular monthly salary to the signed
              PCN form and/or offer letter.
              Calculate any partial pay amounts for
              a new hire starting throughout the
              month or leaves and determine that
              the calculation is consistent with the
              policy.

       b.     Bonus amount to the signed PCN
              form.

       c.     Verify enrollment in the 401k plan and
              if enrolled, recalculate the 401k %
              based on review of the employee
              signed 401k form noting the selected
              % listed.

       d.     Verify enrollment in the pre-tax bus or
              parking plans to the singed enrollment
              forms.

       e.     Recalculate the social security and
              medicare tax amounts based on %’s
              provided by the tax team.

       f.     Verify enrollment in the ESPP plan
              and if enrolled, recalculate the ESPP
              % based on review of the employee
              signed ESPP form noting the selected
              % listed. If the employee withdrew
              from the ESPP plan, agree to the
              signed withdrawal form and test the
              amount refunded to the employee.
     g.     Test any other pay amounts, pre-tax
            or after-tax deductions not listed
            above.

     h.     Recalculate net pay for the same
            month in which the net pay was
            agreed to the payroll register

     i.     Agree the total per the payroll register
            for January through July to the entry
            made by the controllers group for that
            month.

2.   Obtain the July payroll registers for
     International employees and make a selection
     of 10% of the employees by selecting every
     10th employee. For the employees selected,
     obtain all of the detail pay slips for every
     payroll from January through July, excluding
     any expense pays and test the following:

     a.     all of the applicable steps discussed in
            1 above

     b.     as well as any other deductions or
            taxes that can be calculated or agreed
            to a supporting document.

3.   Obtain the terminated employee list from the
     Financial Planning & Analysis team and make
     a selection of 10% of the terminated
     employees.

     a.     For involuntary terminations, review
            the signed termination agreement and
            test any severance amounts that were
            paid.

     b.     Test the partial pay calculation for
            employees leaving during the month
            and ensure that they were not paid in
            the following month.


4.   For all employees selected for testing in 1
     through 3 above, agree them to the official
     July Headcount list published by the Financial
     Planning & Analysis team.
5.   Ensure adequate segregation of duty exits
     and proper security and backup of the payroll
     system is maintained

				
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posted:8/23/2011
language:English
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