ACCA F8 考试：THE AUDIT OF WAGES (Part 3)
(v) Accounting for wage costs and deductions
Payroll software should automatically transfer total wage costs and deductions such as tax and pension contributions to the appropriate accounts in the nominal (general) ledger. Outstanding wages owed to employees or deductions not yet paid over to the relevant third parties should be accrued and disclosed as ‘other payables’.
Relevant controls
• Monthly comparison of actual and budgeted payroll costs and investigation of significant variances. (Control objective 6)
• Independent reconciliation of total pay and deductions between one payroll and the next. (Control objective 6 )
• Annual completion of tax returns and reconciliation to total tax deducted. (Control objective 7)
The above comparisons and reconciliations should be performed by senior responsible officials who are independent of the payroll department – for example, management or financial accounting staff.
TYPICAL TESTS OF CONTROL AND SUBSTANTIVE TESTS
Interim audit
The type of test performed will depend on the particular features of the wages system and the auditor’s evaluation of controls. Typical tests for each control objective are listed below. However, this list is not exhaustive and some of the substantive procedures may be carried out during the final audit.
1. To ensure that employees are only paid for work done.
Test of control – observe clocking on procedures and the level of supervision.
Substantive procedure – select a sample of employees from the payroll and agree hours paid to individual clock cards.
2. To ensure that wages are only paid to valid employees.
Test of control - attend the wages pay out.
Substantive procedure – select a sample of employees from the payroll and vouch to individual contracts of employment in HR department.
3. To ensure that all wages are authorised.
Test of control – review overtime forms/lists for authorised signatures.
Substantive procedure – compare overtime costs each month with the prior year and investigate significant variances.
4. To ensure wages are paid at the correct rates of pay.
Test of control – review log of amendments to master file for evidence of independent review.
Substantive procedure – obtain printout of employee wage rates and compare to HR records.
5. To ensure that errors do not occur in payroll calculations.
Test of control – review payrolls for signatures as evidence of independentcalculation checks.
Substantive procedure – select a sample of employees and check calculations of gross and net pay.
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