Thanks Amanda, great overview of the payroll area. From an audit point of view, I think the main risks for payroll are fraud - ghost employees or the payroll dept paying themselves too much - and understatement of liabilities - has the client recognized all the relevant liabilities for earned but not used entitlements. Also, if the client has not been following the relevant laws, there could be unrecorded liabilities for underpayment to employees, or entitlements owed to employees. This is much harder to audit, because the client will tell you that they have paid everyone correctly.
Hi James - thank you so much for sharing your insights 😊. We’ve seen massive wage underpayment in Australia from applying the wrong rate or systems set up wrong. It will be a major area for auditors to check. Even more so as companies struggle due to the pandemic.
@@amandalovestoaudit This is also a good example of Consideration of Laws and Regulations (AU-C 250 in the US). Wage and entitlement laws are laws that have a direct and material effect on the financial statements. If an employer is intentionally underpaying employees, you have an unrecorded (or at least undisclosed) liability.
Thanks, Doc, it was worthwhile to wait for the video, i knew some brain nuggets were in the oven and they were coming, you never shortchange our expectations, have a lovely weekend, Doc,,,,,looking forward to more fire!!!!
Hi Amanda, thanks for all your detailed explanation! May I ask if the questions ask what are the key assertion and key account at risk, and the risk of material misstatements could relate to both P&L & BS account such as payroll expense / wages payable, how do we determine which account should we answer?
Hey, I love your videos, I have been learning a lot from them, I am in Ireland, could you please make a tutorial with the audit working papers, how can we preparer them, how can we test each section? thank you
@@ravitakumari3267 I've already looked at Sales - ruclips.net/video/8RaE5wcXAx0/видео.html, ruclips.net/video/uIwGi83AB8M/видео.html and Receivables - ruclips.net/video/AMi940VaUOA/видео.html and ruclips.net/video/AJkNeELgqhI/видео.html
Thanks Amna - what state are you in? I did some searching and in NSW it is still 10 years. I guess some awards or enterprise agreements could be more generous. www.industrialrelations.nsw.gov.au/employers/nsw-employer-essentials/long-service-leave-entitlement-nsw/
Ok - I’ve read that page, then all of the sites linked from that. The only state that allows people to take long service leave at 7yrs (where employees are not under a federal award). Every other state and territory is 10 yrs ☺️. However, if you are terminated after 5yrs, you may be eligible for a pro-rated payout. Regardless - if you’re auditing a company that has employees in multiple states, checking the controls and processes in the payroll system is going to be very important!
Thanks Amanda, great overview of the payroll area. From an audit point of view, I think the main risks for payroll are fraud - ghost employees or the payroll dept paying themselves too much - and understatement of liabilities - has the client recognized all the relevant liabilities for earned but not used entitlements. Also, if the client has not been following the relevant laws, there could be unrecorded liabilities for underpayment to employees, or entitlements owed to employees. This is much harder to audit, because the client will tell you that they have paid everyone correctly.
Hi James - thank you so much for sharing your insights 😊. We’ve seen massive wage underpayment in Australia from applying the wrong rate or systems set up wrong. It will be a major area for auditors to check. Even more so as companies struggle due to the pandemic.
@@amandalovestoaudit This is also a good example of Consideration of Laws and Regulations (AU-C 250 in the US). Wage and entitlement laws are laws that have a direct and material effect on the financial statements. If an employer is intentionally underpaying employees, you have an unrecorded (or at least undisclosed) liability.
We need more of these types of videos and thanks alot madam.
Make sure you are subscribed - plenty more to come!
Thanks Amanda, from Liberia, West Africa.
Thank you so much, Amanda. All the way from Sri Lanka.
You’re so welcome!
Thanks, Doc, it was worthwhile to wait for the video, i knew some brain nuggets were in the oven and they were coming, you never shortchange our expectations, have a lovely weekend, Doc,,,,,looking forward to more fire!!!!
Always such a pleasure to read your comments - thank you!
Thanks Amanda... Going to client for a payroll walkthrough in couple of days. This is very clear :D
Glad it was helpful!
Hi Amanda i am from India, your videos are just amazing and informative, keep going..!!
Thank you so much, Amanda. All the way from Nigeria.
You’re welcome!
Hi Amanda, thanks for all your detailed explanation! May I ask if the questions ask what are the key assertion and key account at risk, and the risk of material misstatements could relate to both P&L & BS account such as payroll expense / wages payable, how do we determine which account should we answer?
Done watching. Thank you for this video lecture.
Our employer is going through one from tomorrow. We'll see what comes of it. I hope the business gets jacked up, shaken down and set straight.
super good and helpful video! kind regards and have a nice weekend!
Thanks for the video learning ❣️
thank you very much for a well explained audit process.. I would really appreciate if you have samples of conducting operations audit process as well.
Love hour videos!!!
Thank you 🙏 ☺️
Hey, I love your videos, I have been learning a lot from them, I am in Ireland, could you please make a tutorial with the audit working papers, how can we preparer them, how can we test each section? thank you
Done watching. Thank you!
Done watching, thank you.
Done watching! Thank you po❤️🥰
very good video!
Thanks Hasina 😊
Hi ma'am. Please make a video on auditing inventory and purchases system 😄
Hi - here is a really old example for inventory - but a new one is hopefully being made soon
ruclips.net/video/WBApFsZ6Bo4/видео.html
Done watching po Thankyou po💖
Thank you very much Dr. Amanda.^_^
From Thailand.^_^
These are always insightful (even if I am from the UK) - do you plan on doing one on stock by any chance?
Hi Rafi - yes it is on the list - still to go includes (& the list is growing) - Inventory & COGS, Cash, Equity accounts, Purchases, Leases
AmandaLovesToAudit Wonderful, thank you!
@@amandalovestoaudit waiting for ths topics.
Plus on following as well
O2C,
Finace and accounts
Revenue
@@ravitakumari3267 I've already looked at Sales - ruclips.net/video/8RaE5wcXAx0/видео.html, ruclips.net/video/uIwGi83AB8M/видео.html and Receivables - ruclips.net/video/AMi940VaUOA/видео.html and ruclips.net/video/AJkNeELgqhI/видео.html
Done sir Thank you
I believe it’s now 7 years not 10 in order to be eligible for LSL here in Australia
Thanks Amna - what state are you in? I did some searching and in NSW it is still 10 years. I guess some awards or enterprise agreements could be more generous.
www.industrialrelations.nsw.gov.au/employers/nsw-employer-essentials/long-service-leave-entitlement-nsw/
It's for VIC only
Make video on valuation of shares of company
Maybe 😊 (always remember your manners 😉)
Love from Pakistan
Thank you Salman!
Thanks Amanda
This is where I read this.
www.fairwork.gov.au/leave/long-service-leave
Quite contradicting though
Ok - I’ve read that page, then all of the sites linked from that. The only state that allows people to take long service leave at 7yrs (where employees are not under a federal award). Every other state and territory is 10 yrs ☺️.
However, if you are terminated after 5yrs, you may be eligible for a pro-rated payout.
Regardless - if you’re auditing a company that has employees in multiple states, checking the controls and processes in the payroll system is going to be very important!
Amazing!! Thanks for clarification Amanda, you’re a gem :)
Done watching, thank you!
Done watching, thank you!