We found that most management controls were generally effective and operations were conducted efficiently. Payroll data and payments were generally timely and accurate, and supported by appropriate documentation.
Our recommended improvements are summarized below and described in the Audit Results section. An auditor inspects documents for timely reporting and reviews cancelled paychecks to verify amounts, whether paychecks are in sequence and whether any are for an unusual amount.
To complete the testing objective an auditor should reconcile the payroll journal to corresponding ledger accounts and the total taxes withheld against total tax payments submitted. In these cases, any errors identified by the review could not be timely corrected, and a subsequent period adjustment would be necessary.
During the reconciliation, the payroll technicians spend some of their time correcting errors in the spreadsheet, which does not improve the accuracy of PTL. For these reasons, having one senior payroll technician handle all garnishments makes sense.
Commissioner Pay The salaries of Commissioners are paid semi-monthly because they are defined as a semi-monthly amountand their pay is calculated manually. Fifteen employees did not have an associated state code, apparently because these employees had not filed the required withholding form.
To accomplish this objective, an auditor first gets familiar with steps in payroll processing and the internal controls the business incorporates into the payroll system.
A Pay and Leave Section within that office has day to day responsibility for the payroll. If the form is lost or misplaced, no deduction is set up. This review helps ensure that the data are accurate, and supported by appropriate documentation for example, leave request forms.
To save money and simplify administration, the Commission has decided to out-source payroll processing to another agency, the Department of the Interior. An auditor can create an audit trail by selecting an employee timecard and tracing all the way through the payroll accounting cycle.
Information on garnishments of employee salaries is provided by the Office of the General Counsel. Also, they are unaware that they should ask their Administrative Contact to resolve payroll related questions, rather than contacting the Payroll Section directly.
If not, alternative controls should be implemented. Recommendation G If the Commissioners have no objection, the Office of the Comptroller should pay them bi-weekly through PTL, and make a manual adjustment every quarter. While the spreadsheet acts as a management control, its maintenance is time-consuming, and involves duplicate data entry.
Risk Assessment Assessing audit risks is an initial payroll audit objective. Auditors review standard payroll operating procedures, interview the payroll manager and department employees, and observe daily activities.
Tax tables are also reviewed to make sure they are up-to-date. According to the Payroll Section, many employees call to complain that these changes are not timely.
We are recommending certain enhancements, as discussed below. The employee later detected the error and repaid the amount that should have been withheld. Data transparency as well as the number and quality of internal payroll controls all play a role in a risk assessment.
Our review was performed between January and November in accordance with generally accepted government auditing standards.
The cost of the spreadsheet may exceed its benefits, or cheaper controls could be as effective. Automated payroll processing and related hardware and software are the responsibility of the Office of Information Technology. The results of an audit risk assessment determine how the rest of the audit will proceed.Auditing a client’s payroll system allows an independent auditor to view the entire payroll system from the inside out.
The purpose is to determine -- in the auditors’ opinion -- whether the data in payroll records and statements are truthful and accurate in their accounting. observation and creating a payroll audit trail.
An auditor. Payroll management system encompasses all the tasks involved in paying an organization’s employees. Therefore the School’s Time Keeping and Payroll system need improvement Participant observation Payroll Management System Page 27 Participant observation is a structured type of research strategy.
respond in terms of gender and. Payroll Internal Audit Report September 10, John Mickevice Director, Internal Audit. System is broadly defined, with a focus on team Microsoft PowerPoint - E-2 Payroll Internal Audit Report Author: billsimas.comt Created Date. Payroll System Operations Guide Currently selected; Personnel System Operations Guide; Certified/Classified Personnel Information (CPI) System Operations Guide Section C: Payroll Check and Direct Deposit Statement Processing; Topic 1: Process Preliminary Payroll; Topic 2: Print the Payroll Checks and Direct Deposit Statements.
Our objective was to determine if the payroll system was efficient and effective, and in compliance with General Accounting Office (GAO) guidance and Commission policies and procedures. During the review, we interviewed payroll staff in the Office of the Comptroller, Office of Administrative and Personnel Management, and the Central and Pacific.
GENERAL PAYROLL CONTROLS Dates in scope: access to HR/Payroll system. In addition, supporting documents for manual checks (Observation only.) Separation checklist Audit Program Payroll Pay Practices Ghost Employees Gen Payroll Controls 7/5/ 1 SEGREGATION OF DUTIES.Download