Payroll Cycle

Question 1

Payroll substantive procedures

occurrence

Answer 1

Physical verification

Sample from salary register traced to contract and inspected

CAATS for duplicate or missing items

Question 2

Payroll substantive procedures

Completeness

Answer 2

Inspect general ledger for unsupported payments and follow up

Question 3

Payroll substantive procedures

Accuracy

Answer 3

Select a sample of line items from the payroll report and recalculate deductions

Cast and cross cast salary register

Inspect sample of pay slips and compare to contracts

Question 4

Payroll substantive procedures

Cut off

Answer 4

Inspect the clearing accounts to ensure the salaries and deductions are paid in the right period

Question 5

Payroll substantive procedures

Classification

Answer 5

Inspect postings from salary register to general ledger to ensure they are correct and accurate