Payroll and other expenses
In this lesson, you'll learn how to audit payroll and expenses—a critical area for any audit engagement, since wages are typically material and involve complex year-end adjustments for tax, social security, and pension contributions.
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In this lesson
- 0:00 Payroll expenses and year-end liabilities
- 0:30 Statutory deductions and arrears accounting
- 1:05 Auditing payroll balances: key procedures
- 1:45 Verifying payments and employee deductions
- 2:34 Auditing other expenses effectively
- 3:15 Using ratios and invoices for validation
- 4:04 Cut-off assertion in wages and salaries
About this lesson
You'll discover practical audit procedures including proof-in-total calculations, reconciliations to payroll records, sample testing of payments and deductions, and verification against personnel files and bank statements. The video also covers how to audit other expenses using analytical review, ratio analysis, and invoice inspection to ensure completeness, validity, and correct classification. This content is essential for Audit and Assurance papers and demonstrates how to apply audit assertions like cut-off, completeness, accuracy, and classification to real-world scenarios.
Duration: 5m
Transcript
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