Employee costs Flashcards
What are two risks relating to calculating wages and salaries?
The company may pay employees too much money.
The company may pay employees who have left.
What are three control objectives relating to calculating wages and salaries?
Employees are only paid for work that they have done.
Gross pay has been calculated correctly and authorised.
Net pay has been calculated correctly.
What are three risks regarding recording of wages and salaries?
The various elements of pay might not be recorded correctly in the payroll.
Amounts paid to employees might not be reflected in the cash at bank account.
Pay might not be recorded correctly in the nominal ledger.
What are five control objectives regarding recording of wages and salaries?
Gross and net pay and deductions are accurately recorded on the payroll.
Wages and salaries are correctly recorded in the nominal ledger.
Wages and salaries paid are recorded correctly in cash records.
All deductions have been calculated correctly and are authorised.
The correct amounts are paid to HMRC.
