CADD302 CAUD302 EMPLOYEE COSTS PAYROLL AND PERSONNEL CYCLE TOPIC 5 1
LEARNING OBJECTIVES . Demonstrate a practical understanding of the payroll and personnel cycle (including the process, accounting, risks and controls). . Discuss the risks in the cycle as well as the appropriate responses to reduce RMM to an acceptable level. · Adequately consider the nature, timing and extent in your response to risk. · Design an audit programme, tests of controls and/or substantive procedures to adequately audit the cycle . Identify the correct audit evidence that should be obtained when auditing the cycle. · Identify and incorporate accounting implications. 2
THE BUSINESS CYCLES Customers > Revenue Lenders Investors Financial Resources Financial Control Payroll and personnel V Expenditure Production Employees Suppliers 3