Aud Cave Croc - Payroll

Front 1

Substantive Testing of Payroll
(CAVE CROC)

Completeness

Back 1

tested by comparing current expense with expectations from prior periods; reconciling payroll tax expense to payroll tax returns

Front 2

Substantive Testing of Payroll
(CAVE CROC)

Accuracy

Back 2

tested by making inquiries of mgt relating to reporting & disclosure of contractual arrangements with officers, union contracts, pensions, and OPEB agreements

Front 3

Substantive Testing of Payroll
(CAVE CROC)

Valuation & aulocation

Back 3

tested by tracing cost to inventories to determine that they contain direct labor cost; recalculating pension & OPEB cost

Front 4

Substantive Testing of Payroll
(CAVE CROC)

Existence

Back 4

tested by observing distribution of paychecks

Front 5

Substantive Testing of Payroll
(CAVE CROC)

Cutoff

Back 5

tested by recalculating amounts to be accrued for period from last payroll date to year end

Front 6

Substantive Testing of Payroll
(CAVE CROC)

Rights & Obligations

Back 6

tested by inspecting canceled checks indicating payment to employees, government, and others relating to payroll

Front 7

Substantive Testing of Payroll
(CAVE CROC)

Occurrence

Back 7

tested by vouching sample of employee transactions recorded in payroll-related balances to supporting documentation, including approved time cards, time tickets, notations in HR records

Front 8

Substantive Testing of Payroll
(CAVE CROC)

Classification & understandability

Back 8

tested by reading fs to determine whether balances are appropriately presented and whether the notes should include a description of accounting policies and pension-related transactions