Description
OBJECTIVES:
By the end of the workshop, delegates will have:
- acquired the knowledge to test if the establishment of the payroll function is being managed effectively and efficiently,
- identified opportunities for improving management, and to spot any weaknesses that many have arisen in the system;
- reviewed the basic elements of fraud awareness and explored the nature of fraud procedures applicable and how to prevent fraud;
- a good understanding of the employer’s policy and compliance with legal requirements, methods of making payment and the timetable requirements for paying employees;
- a good understanding of how to secure date from loss, fraud and error that are fundamental to the proper management of payroll.
COURSE OUTLINES
INTRODUCTION
- What is Payroll Audit
- Objectives of Internal Audit for Payroll
PAYROLL IN THE ORGANISATION
- The Internal Auditors examining the functions that payroll performs in the organisation
- Examining different payment methods applicable to employees including issues such as commissions, bonus, share options, and fringe benefits
- Examining the systems for setting and increasing pay are effective
- Determine whether correct payroll data are brought into the financial and management accounts of the organisation.
SETTING UP PAYROLL
- The legal implication of payroll
- The employer’s policy on issues related to payroll
- The method of making payment to employees
- The timetable for processing the payroll.
SUPPLY OF INFORMATION
- Proper system for controlling the supply of information to and from the Payroll department
- Check authorisations, notifications, complete details, and records keeping
- Information from payroll
- Overriding interest disclosure
- People, equipment, stationary, regulations and Internet data.
PAYROLL SECURITY
- Check the procedure for protecting data from loss
- Protection against fraud and error
- Security of Cash
- Loss of Computer
- The risk of Fire
- The risk of electrical damage
- Other software security
INTERNAL AUDIT REPORT ON PAYROLL
- Human Resources responsibility for the administration of payroll
- Review of the actual time sheets (“Ghost Employees”)
- Sampling of payroll time sheets
- To accomplish task, conduct staff and management interviews, examined written procedures, examined personnel files and financial records, and reviewed audit literature on payroll risks and controls
- Review relevant internal control structures
- Use of data extraction software for several audit tests
- Control characteristics
- Key risk areas and controls
- Objective and nature of tests of control
- Analytical procedures
RISK MANAGEMENT – PAYROLL
- Introduction to Risk Management
- Impact of Risk Management on payroll
- Development of risk management framework in line with the organisation Payroll Policy
- Risk Assessment – Payroll
- Materiality and risk
- Audit risk model
AUDITING PAYROLL – IT SYSTEMS
- Planning and procedural mechanism applied
- The acquisition and implementation of IT Systems
- The delivery and support of IT Systems
- Monitoring and learning to enhance capability
- Use of Computer Associated Audit Techniques (CAATS)
- Record keeping, tools and techniques
- Types of cyber-crime
FRAUD – PAYROLL
- The nature of payroll fraud
- Examples of fraud
- Creating on anti-fraud culture
- Whistle blowing
- Risk Assessment
- Methods of detection
- Investigating fraud
