Disbursements and Payroll Audit
Complete the Quality Checklist - Pre Project.
Review prior internal audit reports, follow-up and future
audit considerations master file for issues to be included in
AUDIT COMPLETION AND REPORT
Complete applicable steps in the Project Checklist - Project
Wrap. (includes all wrap-up)
OBJECTIVE: To document the system of internal controls
for purchasing and disbursements and payroll bonus plans.
Ensure policies and procedures are updated and adequate.
Document Key Controls.
Conclude on the adequacy of the system of internal controls.
OBJECTIVE: Ensure invoices for payment represent goods
and services received, and transactions are accurate as to
terms, quantities, prices and extensions.
Obtain Recap Disbursement Journals for the period under
audit (January 2001 through October 2002).
Select a judgmental sample of transactions representing large
dollar amounts, expedited payments, and manual checks.
Obtain the invoices corresponding to the transactions
Compare terms, quantities and prices to supporting purchase
orders and receiving documents. Determine it was properly
approved. Recalculate any extensions.
Select a judgmental sample of transactions for the period
under audit from the G/L Distribution detail reports for
Review the business purpose of each expense for
Validate expenses with proper receipts (when applicable).
Recalculate the total reimbursable amount to test accuracy.
Review each report for proper approval. Note: approvals
should be given by someone independent of the expense
OBJECTIVE: Ensure checks are prepared on the basis of
adequate and approved do