1. What are the common errors and frauds in the personnel and payroll cycle? 2. Which control characteristic are auditors looking for to prevent or detect these errors and frauds? 3. What features of the payroll system could be expected to prevent or detect payment of a fictitious employee? 4. What about the omission of payment to an employee? 5. Class, as an auditor, if the risk of ghost employees is suspected, what audit procedures can be initiated to assess the extent of the fraud that has occurred throughout the payroll cycle. In this day an age of computer generated documents, just because an employee has a file full of supporting documentation, doesn’t mean they actually exist. So what’s a sure fire way to get to the bottom of the fraud? I’ll give you a hint…it has to do with the power of observation! Sovannary mentioned one of the ways but can you think of another?

1. What are the common errors and frauds in the personnel and payroll cycle? 2. Which control characteristic are auditors looking for to prevent or detect these errors and frauds? 3. What features of the payroll system could be expected to prevent or detect payment of a fictitious employee? 4. What about the omission of payment to an employee? 5. Class, as an auditor, if the risk of ghost employees is suspected, what audit procedures can be initiated to assess the extent of the fraud that has occurred throughout the payroll cycle. In this day an age of computer generated documents, just because an employee has a file full of supporting documentation, doesn’t mean they actually exist. So what’s a sure fire way to get to the bottom of the fraud? I’ll give you a hint…it has to do with the power of observation! Sovannary mentioned one of the ways but can you think of another?