This report presents findings from an evaluation of the design and operating effectiveness of controls surrounding the payroll process.
The scope of this audit included a review of the company’s payroll processes within the U.S. and related controls company-wide for the particular period. Payroll activities include employee hires through general ledger reporting for both hourly and salaried personnel. The review did not cover sales commissions controls or reporting. The objectives were to evaluate the design and operating effectiveness of specific payroll controls through interviews and sample testing, evaluate the effectiveness and efficiency of the current payroll process, evaluate the overall internal control environment resulting from the current process and assess for fraudulent activities, and identify opportunities for improving payroll processes and the internal control environment.