Lesson: Payroll Cycle

In this lesson, the focus is on the payroll cycle and its importance in every company. The lesson covers account balance, transactions, and presentation and disclosure related to payroll. It goes through various auditing procedures to ensure that employees are paid correctly, such as searching for unrecorded liabilities, recalculating year-end accruals, examining documents for obligations, and verifying pay rates and deductions. Moreover, it discusses the significance of ensuring compliance with applicable laws and regulations, the timeliness of payments, correct payroll deductions, and proper calculation of bonuses or incentive payments.<br><br>The lesson also delves into the importance of internal controls in securing payroll and preventing unauthorized access. Additionally, it emphasizes the role of auditors in identifying areas for improvement and providing recommendations for addressing any issues found. Furthermore, the lesson touches upon the role of service organizations in payroll functions and the need for auditors to obtain and evaluate evidence related to these service organizations. In sum, this lesson offers a comprehensive understanding of the payroll cycle and its various components, ensuring auditors grasp the essential aspects of this critical function.