Learning Objectives

Develop an understanding of the human resource management process.

Identify the types of transactions in the human resource management process and the financial statement accounts affected.

Identify and describe the types of documents and records used in the payroll application.

Understand the functions in the human resource management process.

Know the appropriate segregation of duties for the human resource management process.

Identify and evaluate inherent risks relevant to the human resource management process.

Assess control risk for a human resource management process.

Identify key internal controls and develop relevant tests of controls for payroll transactions.

Relate the assessment of control risk to substantive procedures.

Identify substantive analytical procedures used to audit payroll expense and payroll-related accrued expenses.

Identify tests of details of transactions used to audit payroll expense and payroll-related accrued expenses.

Identify tests of details of account balances and disclosures used to audit payroll expense and payroll-related accrued expenses.

Evaluate the audit findings and reach a final conclusion on payroll expense and payroll-related accrued expenses.