Payroll Assignment

IDS 390w

PAYROLL CYCLE ASSIGNMENT

Assignment Parts:

1) Work Plan Memo (due Mar.24/25)

2) Team Workpapers (due May 5/6--ALL TEAMS, regardless of presentation )

3) Team Presentation ( May 10/11, 12/13)

Role: You and your team are staff accountants in a CPA firm.

Audience: Manager and Partner on the engagement, in the same CPA firm.

Task: Contact a company and arrange an interview. You will need to prepare questions to help you obtain an understanding of the company’s payroll cycle. Based on evidence you obtain from the interview, you will document the payroll system, using narrative descriptions, flowcharts, company forms, etc.. Your documentation will be done in the form of workpapers, which will allow you to analyze the company’s internal controls, strengths and weaknesses, and make appropriate recommendations.

Requirements:

1) Work Plan Memo:

Required information: Company Name, Company Contact Person, Date of Interview, Who will be interviewed, Team members attending the interview, Questions to be asked at the interview, Team work assignments (tasks and responsibilities of each team member, i.e. Who will prepare flowcharts, narratives, workpaper cross-referencing and formatting, presentation visuals).

2) Team Workpapers:

Workpapers sections are to include: General Company Description, Organizational Chart, Job Descriptions, Work Performed, Payroll System Narratives for process of hiring, firing, check preparation, distribution, record-keeping, etc., Flowcharts, Analysis of Strength/Weaknesses, Recommendations. Workpapers must have an index, appropriate headings, cross-referencing. Consult your audit text and the work paper hand-out for formatting.

3) Team Presentation:

Prepare a 10-12 minute presentation of your key findings. Describe your analysis and recommendations. Focus on how the process works, differs from theory, includes possibilities for error. Use appropriate visuals. DON’T use only chronological organization!