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How to test for completeness of payroll expense?

Assuming that the payroll register reconciles with the payroll expense balance in the income statement, then the audit team needs to verify the completeness of the payroll report. This can be a tough test as its difficult to verify that all employee time was recorded.

One test the audit team can perform is to sample time sheets and verify that the time sheet was recorded in the payroll report. If certain time sheets are missing from the payroll report, then the payroll report might not be complete.

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