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Payroll and Human Resources cycle, Account affected, Compiled from Lesson…

- - - - :red_cross: The human resource department is not functioning as the company may deem it unnecessary.
      - Test:Select a sample of payroll runs and compare the payroll totals with the wage cheques amounts. Follow through to physical paid cheques and or proof of payments to ensure that there is two signatures as evidence of review and authorisation.
  - - - :red_cross: Supervisor records workers times on a piece of paper and does the calculations just before payout.
      - Test: Match hours worked with clock cards. match payrates, and other deductions, reperform all castings and calculations. agree them with the recorded amounts, inspect for evidence of review. inspect reconciliations, enquire from management about different functions performed. follow up any deviations with management.
  - - - :red_cross:Colleagues can collect on behalf employees.
      - Test: Attend a payout to verify the validity of employees on the payroll, do this on surprise basis. Observe whether the employees follow company policy when payouts are done, things like signing and collecting their own payment. Enquire about the level of segregation of duties, procedures regarding staff matters. Inspect the policy regarding clocking and preparation of payroll. observe the above-mentioned procedures.
  - - - :red_cross:there is no supervision when payments are doneas it is only the floor supervisor.
      - Test: Inspect policy on how and when liabilities raised and paid. Select a few months and inspect entries. also inspect that liabilities are paid timeously and follow any deviations up with management
  - - - :red_cross: only the supervisor checks the deductions and payroll before payouts.
      - Test: Inspect the payroll for signature of the senior official. Seelct a sample of employee files and inspect the documentation in i, ensure the documentation is complete, Observe and physically verify employees, For employees not physically verified, enquire from the supervisor to vouch the the employees.