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How to test existence for payroll expense?

Existence isn’t a super high risk as its unlikely that the company would record payroll expense that didn’t exist/occur. However, to test the assertion, the audit team would vouch payroll entries from the payroll report to employee time sheets.

The audit team would verify that the number of hours agrees and then make sure the total payroll expense is accurate based on the employees’ hourly rate / salary.


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