Client: __________________________________________ Audit Date: _________________

Client Personnel Interview: __________________________________________________________

________________________________________________________________________________
Auditor: ______________________________________ Date Completed: _________________
Reviewed by: _________________________________ Date Reviewed: __________________
Type of Testing: Compliance
Cycle: Expenditure Class of Transactions: Payroll
Executing Yes No NA Remarks
1. Are hirings authorized by personnel department?
2. Are names of newly hired and terminated employees
reported in writing to the payroll department?
3. Are wage rates determined by contract or approved by a
personnel officer?
4. Are time cards or piecework reports prepared by the
employee approved by his or her supervisor?
5. Is a time clock or other electromechanical system used?
6. Is there internal verification of payroll checks with payroll
register data?
7. Are payroll checks signed and distributed by treasurer’s
office personnel?
8. Are payroll tax returns reconciled to employees’ earnings
records?

Recording Yes No NA Remarks

1. Are personnel who journalize payroll transactions
independent of those who prepare and pay the payroll?
2. Are changes in employee earnings records reconciled
with payroll register data?
3. Are costed time tickets verified for proper rates and
mathematical accuracy?

Custody Yes No NA Remarks

1. Are unclaimed wages deposited in a special bank account
or otherwise controlled by a responsible officer?
2. Are blank payroll checks properly safeguarded?
3. Are personnel and employee earnings records kept in
locked files?
4. Is payroll bank account periodically reconciled by an
independent person?