Payroll

Which of the following is included in employee compensation?

• Salaries
• Annual Leaves
• Bonuses
• Accrued Wages
• All of the above

Salary Reasonableness test is performed to calculate which of the following?

• Expected Wages in the current year
• Reasonableness of employee salaries as per industry
• Bonus
• Reasonableness of a certain employees salary as compared to another employee

All of the below are checked while auditing bonus except:

• Bonus Policy
• Appropriate approval of bonus
• Subsequent payment of bonus
• Employee Job Satisfaction

Which documents are normally taken from the client while auditing payroll?

• HR Signatures Report
• Starters & Leavers Report
• Fixed Asset Report
• Confirmation

Select one of the major reasons an auditor checks the existance of an employee while performing audit of payroll?

• A dummy employee salary can reduce profits and therefore lower tax payable
• Increases trust among employees
• Helps maintain confidentiality during audit

One of the ways auditors can ensure accuracy of certain retirement benefits are as follows

• Inquiry from employee
• Inquiry from client
• Recomputation of Benefit as per relevant laws and regulations
• None of the above

Which is not an assertion that an auditor considers while auditing payroll expense?

• Completeness
• Rights & Obligation
• Existence
• Accuracy

Which two documents are agreed while performning payout testing?

• GL Balance & TB
• Payslip & Payroll Register
• Payroll Register & Bank Statements

Which of the following statements regarding the audit of bonus payments is true?

• Auditors are only concerned with verifying the accuracy of the bonus calculation formula.
• Auditors are not responsible for ensuring that bonus payments comply with legal requirements
• Auditors must assess whether the bonus calculation method is consistently applied and appropriately authorized
• Auditors are only required to review bonus payments made to senior management, not to other employees

When auditing employee benefit expenses, which of the following is a primary concern of auditors?

• Verifying individual employee benefit eligibility
• Confirming compliance with benefit plan documents and legal requirements
• Assessing the adequacy of employee training programs