By the end of the workshop, participants will have:
- Gained the knowledge to evaluate the effectiveness and efficiency of payroll function management.
- Identified opportunities for improvement and detected potential weaknesses within the payroll system.
- Developed an understanding of fraud awareness, including applicable fraud prevention procedures.
- Reviewed employer policies to ensure compliance with legal requirements, payment methods, and payroll timelines.
- Learned strategies to safeguard payroll data against loss, fraud, and errors, ensuring proper payroll management.
INTRODUCTION
- Definition and scope of Payroll Audits
- Objectives of internal payroll audits
PAYROLL IN THE ORGANIZATION
- Examining payroll’s role and functions within the organization
- Overview of payment methods, including commissions, bonuses, share options, and fringe benefits
- Evaluating the effectiveness of pay-setting and increment systems
- Ensuring accurate integration of payroll data into financial and management accounts
SETTING UP PAYROLL
- Legal implications and compliance requirements for payroll systems
- Employer policies related to payroll operations
- Methods of employee payment and associated considerations
- Timelines and processes for payroll preparation and execution
SUPPLY OF INFORMATION
- Establishing systems to control information flow to and from the payroll department
- Reviewing authorization, notification, and record-keeping practices
- Key sources of payroll information and their management
- Addressing overriding interest disclosure and compliance
- Managing resources such as personnel, equipment, stationery, regulations, and internet data
PAYROLL SECURITY
- Procedures to safeguard payroll data from loss, fraud, and errors
- Security protocols for handling cash and physical assets
- Mitigating risks such as computer theft, fire, electrical damage, and software vulnerabilities
INTERNAL AUDIT REPORT ON PAYROLL
- Defining HR’s role in payroll administration
- Reviewing time sheets to identify anomalies (e.g., “ghost employees”)
- Sampling and analyzing payroll time sheets for accuracy
- Conducting interviews, reviewing documentation, and assessing risks and controls
- Leveraging data extraction software for audit tests
- Identifying control characteristics, risk areas, and testing procedures
RISK MANAGEMENT IN PAYROLL
- Introduction to risk management principles
- Evaluating risk management’s impact on payroll processes
- Developing a risk management framework aligned with organizational payroll policies
- Conducting payroll-specific risk assessments
- Applying the audit risk model to identify and address key risks
AUDITING PAYROLL – IT SYSTEMS
- Planning and implementing procedural mechanisms for payroll IT audits
- Managing IT system acquisition, implementation, delivery, and support
- Monitoring systems to enhance efficiency and security
- Using Computer-Assisted Audit Techniques (CAATs) for analysis
- Best practices for record-keeping and addressing cybercrime risks
FRAUD IN PAYROLL
- Understanding the nature and types of payroll fraud
- Examples of payroll fraud and their implications
- Building an anti-fraud culture within the organization
- Whistleblowing procedures and risk assessment methods
- Techniques for detecting and investigating payroll fraud
