ACCAF8知识点THEAUDITOFWAGES.doc

20XX年ACCAF8知识点：THE AUDIT OF WAGES (Part 3)
ACCA F8 考试：THE AUDIT OF WAGES (Part 3)
(v) Accounting for wage costs and deductions
Payroll software should automatically transfer total wage costs and deductions such as tax and pension contributions to the appropriate accounts in the nominal (general) ledger. Outstanding wages owed to employees or deductions not yet paid over to the relevant third parties should be accrued and disclosed as ‘other payables’.
Relevant controls
• Monthly comparison of actual and budgeted payroll costs and investigation of significant variances. (Control objective 6)
• Independent reconciliation of total pay and deductions between one payroll and the next. (Control objective 6 )
• Annual completion of tax returns and reconciliation to total tax deducted. (Control objective 7)
The above comparisons and reconciliations should be performed by senior responsible officials who are independent of the payroll department – for example, management or financial accounting staff.
TYPICAL TESTS OF CONTROL AND SUBSTANTIVE TESTS
Interim audit
The type of test performed will depend on the particular features of the wages system and the auditor’s evaluation of controls. Typical tests for each control objective are listed below. However, this list is not exhaustive and some of the substantive procedures may be carried out during the final audit.
1. To ensure