Discuss tests of controls and substantive tests of transactions for the payroll and personnel cycle

Discussion topic:
1.      Discuss tests of controls and substantive tests of transactions for the payroll and personnel cycle. How does this apply to your chosen organization?
How would your current employer or a previous employer do if their inventory/warehousing cycle and/or their payroll cycle accounts were audited?Student Post
2.      How would your current employer or a previous employer do if their inventory/warehousing cycle and/or their payroll cycle accounts were audited?
My Current employer would do good on a payroll audit, we have an outside company who is responsible for making sure that all state and federal regulations are met. And we are required to submit our payroll weekly by a cut off time, if we miss our cut off time too much the company we have could choose to drop us as a customer. Also with submitting payroll on time we also keep paper copies of hours worked for each employee, Those time cards are signed by employee and manager. When we submit payroll, we have an electronic file that we keep up with for our QuickBooks journal entries we keep this so we can trace back why we posed what where. We also to all of our bank account reconciliations at the end of each month to ensure all transactions that cleared the bank have been posted. We also keep our employee data files electronic and paper copies. All requests, doctor notes, write ups, and accident reports go in both files.

3.      Discuss tests of controls and substantive tests of transactions for the payroll and personnel cycle. How does this apply to your chosen organization?
The auditor’s objective in an audit of internal control over financial reporting is to express an opinion on the effectiveness of the company’s internal control over financial reporting. Because a company’s internal control cannot be considered effective if one or more material weaknesses exist, to form a basis for expressing an opinion, the auditor must plan and perform the audit to obtain appropriate evidence that is sufficient to obtain reasonable assurance5 about whether material weaknesses exist as of the date specified in management’s assessment. A material weakness in internal control over financial reporting may exist even when financial statements are not materially misstated. the audit of internal control over financial reporting should be integrated with the audit of the financial statements. The objectives of the audits are not identical, however, and the auditor must plan and perform the work to achieve the objectives of both audits. The auditor should properly plan the audit of internal control over financial reporting and properly supervise the engagement team members. When planning an integrated audit, the auditor should evaluate whether the following matters are important to the company’s financial statements and internal control over financial reporting.
https://pcaobus.org/Standards/Auditing/Pages/AS2201.aspx