Auditing & Assurance Services 6th Edition by Timothy Louwers

Exercise 20

Payroll Tests of Controls. The diagram in Exhibit 8C.22.1 describes several payroll tests of controls. It shows the direction of the tests, leading from samples of clock cards, payrolls, and cumulative year-to-date earnings records to blank squares.
Required:
For each blank square in Appendix Exhibit 8C.22.1, write a payroll test of controls procedure and describe the evidence it can produce. ( Hint: Refer to Exhibit 5.12.)
EXHIBIT 8C.22.1
Diagram of Payroll Tests of Controls

EXHIBIT 5.12 Payroll System Flowchart