Chapter26 Internal and Governmental Financial Auditing and Operational Auditing(审计学-英文版)[精品].doc

Chapter26 Internal and Governmental Financial Auditing and Operational Auditing(审计学-英文版) Audit of the Payroll and Personnel Cycle Chapter 18 Learning Objective 1 Identify the accounts and transactions in the payroll and personnel cycle3. Accounts in the Payroll and Personnel Cycle The overall objective in the audit of the payroll and personnel cycle is to evaluate whether the account balances affected by the cycle are fairly stated in accordance with generally accepted accounting principles. Accounts in the Payroll and Personnel Cycle Accrued Wages, Salaries, Bonuses, and Commissions Payment Beginning balance Earned wages, salaries, etc. Ending balance Direct Labor Cash in Bank Payment for salaries Payment for payroll taxes Withheld Income Taxes and Other Deductions Payment Beginning balance Payroll withholding Ending balance Accounts in the Payroll and Personnel Cycle Cash in Bank Payment for salaries Payment for payroll taxes Withheld Income Taxes and Other Deductions Payment Beginning balance Payroll withholding Ending balance Accrued Payroll Tax Expense Payment Beginning balance Payroll tax expense Ending balance Payroll Tax Expense Accounts in the Payroll and Personnel Cycle In most systems the accrued wages and salaries account is used only at the end of an accounting period. Learning Objective 2 Describe the business functions and the related documents and records in the payroll and personnel cycle. Business Functions in the Cycle and Related Documents and Records The payroll and personnel cycle begins with the hiring of personnel and ends with payment to the employees for the services performed and to the government and other institutions for the withheld and accrued payroll taxes and benefits. Personnel and Employment Personnel records Deduction authorization form Rate authorization form Timekeeping and Payroll Preparation Time Card Job Time Ticket Payroll Transaction File Payroll Journal Timekeeping and Payroll Preparation Payroll Master File A payroll mas