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    Swift Co

    Uploaded by

    archa.ashok1998

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Swift Co

    Uploaded by

    archa.ashok1998
    2 views2 pages

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

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    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    2 views2 pages

    Swift Co

    Uploaded by

    archa.ashok1998

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Direct Control Test of Control

    Swift co has a Human resources (HR) Review the job description of HR and payroll to
    department which is responsible for confirm responsibility for setting up new
    setting up all new joiners and a payroll employees and to process wages and salaries
    department which processes wages and salaries are split between HR and payroll.
    .
    Discuss with payroll department staff
    As different departments are performing regarding the process for setting up new
    different activities this enables segregation of employees to confirm whether any employees
    duties. This ensures no fictitious employees are can be set up before getting authorized form
    being setup and the employee payments are from HR.
    accurate.

    Therefore, reduces the risk of overstatement of


    payroll cost.

    Unique employee number

    For new employees, HR completes a joiner’s The audit team should attempt that if
    form which includes a unique employee number employee data can be entered in the payroll
    The unique employee number must be entered system without the unique number to identify
    into the payroll system before the employee can whether system will reject this attempt.
    be added to payroll.

    This ensures that there will be no fictitious


    employees in the company as the payroll staff
    will be unable to setup new employee without
    the unique employee number.

    Therefore, this helps in reducing the risk of


    overstatement of payroll cost.

    Exception Report

    On a monthly basis, an exception report relating Obtain a sample of exception report to review
    to changes to the payroll standing data is that it is evidenced by signature of the payroll
    produced and reviewed by the payroll manager manager.
    who evidences this review.

    As an exception report is produced, this ensures


    to identify on timely basis if any unauthorized
    changes have been made in the payroll standing
    data.

    Therefore, it helps to identify whether the


    payroll standing data is accurate.
    Automated system

    The payroll supervisor selects a sample of the The audit team should confirm that the
    payslips, reperforms the gross to net pay automated system is accurate and error free
    calculations and investigates any discrepancies. by recalculating a sample of gross to net pay
    The sampled payslips are then signed as calculation.
    evidence of this review.
    Obtain a sample of payslips and review for
    This helps to identify if the gross to net pay evidence of review by payroll supervisor.
    calculation generated by automated system is
    accurate and if not, it can be corrected on timely
    basis.

    Therefore, it reduces the risk of under or


    overstatement of salary and wages.
    Authorised purchases
    The audit team should obtain a copy of the
    A multi‐part purchase order is generated and the purchase order to review the evidenced by
    purchasing manager authorises all orders up to purchase manager of orders below $5000 and
    $5,000. Orders over $5,000 are authorised by by purchase director of orders above $5000.
    the purchasing
    director. Agree this to the appropriate signature in the
    approved signatories list.
    This helps in ensuring that assets being
    purchased by the staff for the personal use and
    frauds can be avoided.

    Therefore, it reduces the risk of purchasing non


    business assets and over or understatement of
    purchases.
    Goods received

    The warehouse team processes goods received Obtain a sample of GRN to review for evidence
    from suppliers. They agree the goods of review in the form of signature to ensure
    received to the purchase order and check the checks are undertaken on receipt of goods.
    quantity and the quality of the goods.
    During the interim audit the audit team should
    This ensures that goods received matches with observe the process when a good is received
    the purchase order and also helps in early to identify the checks undertaken.
    identification of damaged goods

    Therefore, it reduces the risk of over or


    understatement of purchase expense.

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