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Nikhil Jain asked 1 year ago

Sir I’m working on a client’s place, and when salary comes we have to audit it based on excel sheet provided, because they are having more than 1000 employees and a specific software calculates salary for MGT which is complex to understand.
Can we do anything else to be more cautious?

1 Answers
RaviRavi Staff answered 1 year ago
  1. Understand System :- Who maintains master data, who adds, deletes employees, changes salary, who attendance and leaves are maintained etc

  2. Test of Controls :-   Who computes salary ?, Who reviews it ?, Who approves Payment ? Check for segregation of duty, check for approvals.

  3. Analytical Procedures:- Make monthly salary graph, investigate fluctuations.
  4. Test of Details:- Select sample including new employees, promotions, resignations etc. Recompute salary take proper dates & leaves. Check components as  per appointment letter and company policy. Check TDS deduction. Check accounting entry and transfer from bank account for a month.


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