You are assigned to audit a public client. This client uses a service provider for processing its payroll transactions which are considered material and significant. Your job is to provide a work program listing the steps you would perform as part of the audit. You may assume that the client receives a SAS 70 Type II report that matches the period under audit.
Other details:
Your client primarily provides services to a specific industry. It has 5 senior managers who are eligible for bonus and stock compensation. All other employees are salaried, except one who is paid only commission. The service provider supplies the terminal used to enter the transactions and receive the output. Employees are paid using EFT. There is a Human resource Department and an accounting clerk who together oversee the payroll function. The accounting clerk reports to the controller.

Question

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The Answer of You are assigned to audit a public client. This client uses a service provider for processing its payroll transactions which are considered material and significant. Your job is to provide a work program listing the steps you would perform as part of the audit. You may assume that the client receives a SAS 70 Type II report that matches the period under audit.
Other details:
Your client primarily provides services to a specific industry. It has 5 senior managers who are eligible for bonus and stock compensation. All other employees are salaried, except one who is paid only commission. The service provider supplies the terminal used to enter the transactions and receive the output. Employees are paid using EFT. There is a Human resource Department and an accounting clerk who together oversee the payroll function. The accounting clerk reports to the controller.

You Are Assigned to Audit a Public Client