This sample audit report can be used by auditors reviewing and validating an organization’s payroll and procurement data.
In this sample, testing involved activities such as identifying employees who have more than one listing in the employee master file and, if duplicates are found, determining if both listings are being paid; identifying payments made to terminated employees; identifying independent contractors within the payroll file and confirming authorization of the contractors with management; and identifying payments made on weekends and/or holidays. The following observations were noted as a result of testing:
- Payments occur bimonthly, with a second payment occurring the last day of the month.
- All payments occurred within two weeks of termination.
- All employees on the payroll register matched the personnel master.
- An authorized contractor listing is not available.