Assignment
Although payroll is often seen as a low-risk area, considerable loss can occur in payroll. Knowing how to audit payroll has become increasingly important. Payroll expense can exceed 50% of total expenses in some companies. As such, it is considered a significant transaction. As you determine high-risk areas, you will begin to build your audit program. With regard to the assertions noted below, develop an internal control, test (and the documentation or evidence to support the test), control, and assertion. Additionally, test an internal control for each assertion that relates to payroll. The audit control and test will act as the basis for your audit program.
The assertions include the following:
Occurrence
Completeness
Authorization
Accuracy
Cutoff.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.