This training program focuses on how to perform auditing procedures for key HR functions of recruitment, selection, placement, performance management and payroll related expenses. The training will includes illustrative auditing procedures and discusses the effects of assessed levels of risk of material misstatement on the design and performance of substantive procedures.
Audit of HR and Payroll process is a key auditable units for almost all organizations. HR functions involves making sure that key controls are in place and working effectively in the recruitment and selection process to ensure optimal and competent staff in key positions in an organization. Equally, the payroll aspect involves processing employee wages, salaries and other related emoluments, withholding appropriate taxes and remitting accurate employee taxes. An audit should include an assessment of the HR personnel’s knowledge of key risk and internal controls inherent in the HR and payroll systems. HR and Finance knowledge concerning changes and updates to tax laws (Labor Act), as well as familiarity with technology used to process the payroll are crucial in making the function work well to standard.
- Understanding key internal controls and auditing procedures for core HR functions of recruitment, selection, placement, orientation, training and performance management;
- Understand the basic procedures for auditing payroll and related operating expenses
- Understand the effects of assessed levels of risk of material misstatement on payroll and other related operating expenses auditing procedures
- Learn ways to audit payroll and operating expenses more efficiently
- Design and prepare the most efficient documentation for payroll and operating expenses auditing procedures
- Identifying and incorporating payroll fraud schemes into the Payroll Audit Program
- Key risk issues in the recruitment, selection, compensation, performance management and labor relations issues
- Key internal controls in the HR process to address the risk identified;
- Key accounting and auditing standards affecting payroll and related operating expenses;
- Understanding relevant assertions for payroll and related operating expenses;
- Basic auditing procedures for payroll and related operating expenses;
- Effects of risk of material misstatement on payroll and operating expenses auditing procedures;
- Designing and using the most efficient documentation for payroll and related operating expenses auditing procedures;
- Fraud risk schemes relating to payroll and how to test for such schemes in Audit process;
- Payroll expenses are for valid services performed in the ordinary course of business that are recorded correctly as to account, amount and period.
- Payroll services are properly described and disclosed in the income statement.
- Payroll services are properly classified whether for current or future events.
- Payroll deductions are lawfully and properly authorized and in line with company policies and procedures;
- Fraud Risk mechanism under payroll processing including ‘ghost’ names inclusions, paying exited staff or terminated staff even after contract has ended, and misapplication of salary raises to the wrong existing employees, etc.
HR Officers, HR Managers, Internal Auditors, Finance Officers and Senior Managers with role with responsibility for the HR and payroll process