This sample report summarizes findings from a review of a company’s payroll process. The objectives of this review were to develop an understanding of payroll policies and processes; analyze and update existing process documentation; document associated risks and controls; identify gaps in controls where risks were not adequately mitigated; and test selected controls and verify that they are operating as stated.
The scope included process documentation and evaluation and key control testing and reporting. In the process documentation and evaluation phase, the approach was to understand the payroll process by reviewing current policies and procedures and interviewing key management and department personnel, identify and prioritize key risks and evaluate control design by comparing to standard payroll practices and controls, and identify potential control gaps in process design. In the key control testing and reporting phase, the approach was to develop test plans and test key controls to validate they were functioning as intended, report observations and recommendations, and develop action plans to remediate issues identified.