Substantive procedures for accruals:

 Review list of accruals prepared by Client Company and check the calculations and additions for
arithmetical accuracy.
 Compare current year’s list of accruals with previous year to identify and investigate significant
differences.
 Check the amounts in the listing against the balances in the relevant main ledger expense
accounts and ensure that the amounts are same.
 Test transactions around accounting period end to determine whether they have been
recognised in correct period.

Substantive procedures for payroll:

 Cast a sample of payroll records to confirm completeness and accuracy of the payroll expense.
 For a sample of employees, recalculate the gross and net pay and agree to the payroll record to
verify accuracy.
 Compare current year’s total payroll expense to prior year and investigate any significant
differences.
 For salaries, agree the total net pay per payroll records to the bank transfer listing of payments
and to the cashbook to ensure the arithmetical accuracy.
 Review monthly payroll charges, compare this to the prior year and budgets and discuss with
management about any significant differences.