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    Audit Module 2 - Payroll Tax and Superannuation Workpaper

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    Siddhant Aggarwal
    This document outlines the analytical review approach to test the payroll tax and superannuation account balances. It involves obtaining the balances from the trial balance, recalculating the expected amounts based on payroll costs and statutory rates, comparing the calculated and actual amounts, and determining if any variance exceeds 10% tolerable error. The relevant balances from the trial balance to perform the calculations are also provided.

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    Audit Module 2 - Payroll Tax and Superannuation Workpaper

    Uploaded by

    Siddhant Aggarwal
    109 views2 pages
    This document outlines the analytical review approach to test the payroll tax and superannuation account balances. It involves obtaining the balances from the trial balance, recalculating the expected amounts based on payroll costs and statutory rates, comparing the calculated and actual amounts, and determining if any variance exceeds 10% tolerable error. The relevant balances from the trial balance to perform the calculations are also provided.

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    Original Title

    Audit Module 2 - Payroll Tax and Superannuation Workpaper(1)

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    This document outlines the analytical review approach to test the payroll tax and superannuation account balances. It involves obtaining the balances from the trial balance, recalculating the expected amounts based on payroll costs and statutory rates, comparing the calculated and actual amounts, and determining if any variance exceeds 10% tolerable error. The relevant balances from the trial balance to perform the calculations are also provided.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    109 views2 pages

    Audit Module 2 - Payroll Tax and Superannuation Workpaper

    Uploaded by

    Siddhant Aggarwal
    This document outlines the analytical review approach to test the payroll tax and superannuation account balances. It involves obtaining the balances from the trial balance, recalculating the expected amounts based on payroll costs and statutory rates, comparing the calculated and actual amounts, and determining if any variance exceeds 10% tolerable error. The relevant balances from the trial balance to perform the calculations are also provided.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 2

    Reference

    WP 3.1 – Payroll Tax and Superannuation Analytic

    Approach
    For the Payroll Tax and Superannuation balances, perform an analytical review to gain comfort over the balances. This will be done b

    Payroll Tax
    1.       Obtain the Payroll Tax account balance from the Trial Balance document
    2.       Determine the payroll tax percentage to be applied to staff costs (assuming all staff are based in New South Wales) - this will re
    3.       Recalculate the expected payroll tax amount
    4. Compare the amount calculated to the Trial Balance and determine whether the variance is greater than the tolerable error (to
    5. Conclude on your analysis by stating whether the balance is within the tolerable error.

    Superannuation
    1.       Obtain the Superannuation account balance from the Trial Balance document
    2.       Assume the Superannuation guarantee amount provided by Global Motor Manufacturers Australia Pty Ltd to all employees is 1
    3.       Recalculate the expected superannuation amount based on the above assumption
    4. Compare the amount calculated to the Trial Balance and determine whether the variance is greater than the tolerable error (to
    5. Conclude on your analysis by stating whether the balance is within the tolerable error.

    Testing

    Balances Tested
    Trial Balance
    Name Account No. Financial State Classification Sub-Classificati Natural Balance 2019
    Superannuation 5202 Income StatemeExpense Employee benefiDebit $ 900,000
    Payroll taxes 5204 Income StatemeExpense Employee benefiDebit $ 495,000

    Relevant Balances for Calculations


    Name Account No. Financial State Classification Sub-Classificati Natural Balance 2019
    Payroll 5201 Income StatemeExpense Employee benefiDebit $ 9,000,000
    the balances. This will be done by:

    n New South Wales) - this will require some online research

    ater than the tolerable error (tolerable error is set by the audit manager at 10%)

    ralia Pty Ltd to all employees is 10% of their salary amount

    ater than the tolerable error (tolerable error is set by the audit manager at 10%)

    Balance 2018
    $ 807,500
    $ 465,375

    Balance 2018
    $ 8,500,000

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