ABSTRACT
This chapter discusses payment of salaries and wages and the role of chief accountant, payroll clerk, and treasurer’s staff. The responsibility of the chief accountant is: to check the payroll, to reconcile payments with the payroll, and to approve advance payments. The responsibility of the payroll clerk is: to check time cards, to prepare the payroll, and to file documents. The purpose of this internal audit is to determine the integrity of the payroll record. The Chief Accountant should trace a sample of salaries, withholdings, deductions and direct deposit information to supporting documents in each selected employee’s payroll and/or personal file, and trace a sample of new recruits and departures to their personal files including verification of first and last pay dates. The Accountant should cross-check the payroll master file for employees with identical addresses, social security data or direct deposit information.
