(i) Audit Work Performed:

Payroll:
Documentation Review: The team reviews employment contracts, payroll records, and policies to
understand the payroll process and identify any deviations or anomalies.
Testing of Controls: Controls surrounding payroll processing, such as password access and
segregation of duties, are tested for effectiveness.
Sample Testing: The team selects a sample of payroll transactions to verify accuracy and
completeness, including wage rates, hours worked, overtime calculations, and deductions.
Analytical Procedures: Analytical procedures are conducted to assess the reasonableness of payroll
expenses relative to the number of employees, industry benchmarks, and historical data.
Confirmation: External confirmation may be obtained from employees regarding their employment
details and compensation.

(ii) Analysis of Strengths and Weaknesses:

Payroll Cycle:
Strengths:
Segregation of duties between Jenny and Atahar reduces the risk of fraudulent activities.
Documentation of employment contracts and payroll policies provides a clear framework for payroll
processing.
Regular backup of payroll data enhances data security and integrity.
Weaknesses:
Lack of independent review of payroll calculations increases the risk of errors or misstatements.
Dependency on Jenny for critical payroll functions poses a single point of failure.
Manual entry of overtime hours from claim sheets increases the risk of transcription errors.
Limited oversight on changes to wage rates and deductions may result in inaccuracies or non-
compliance.
Passage:
(The essential finance receptionist is Jenny. When Jenny is truant due to sickness or yearly take off,
the buy record receptionist, Atahar takes on Jenny's finance obligations in expansion to his existing
part. The finance framework is gotten to employing a watchword which is known as it were to Jenny
and Atahar.
Due to the requests of producing a finance on a week-by-week premise, Jenny does not have time to
check these calculations.)
Restricted controls over secret word administration and get to finance frameworks, posturing a chance
of unauthorized get to.
Passage:
(Amid active times, extra minutes hours are accessible for those representatives accessible. Workers
record any extra time worked on week after week additional time claim sheets which are filtered and
messaged to Jenny. Jenny collates the information on a week after week premise from the extra time
sheets and inputs it into the pertinent employee's finance record. Utilizing the standard hours worked
furthermore the additional time hours, the finance framework naturally calculates the net and net pay
additionally the important findings. Jenny creates a printout of the finance, which is exceptionally
nitty gritty and organizes the number of hours paid, part between essential and additional time, net
pay, annuity conclusions, net pay and employer's charge for each person worker.)
Since there are as well numerous payrolls, Jenny can't check them Workers record it themselves to
transfer to the framework from that framework straight to bookkeeping self-recorded additional work
without checking.
Recommendations:
Implement regular physical inventory counts to enhance accuracy and reliability.
Strengthen controls over payroll processing by implementing independent reviews and segregation of
duties.
Automate overtime tracking and payroll calculations to reduce the risk of errors and improve
efficiency.
Provide additional training to staff involved in payroll processing to ensure compliance with
regulations and company policies.
Enhance documentation and record-keeping practices to facilitate audit trail and oversight.
By addressing these weaknesses and implementing recommended improvements, Traverse can
enhance the reliability and integrity of its inventory and payroll processes, ultimately strengthening its
financial reporting and internal controls.