Where mechanical device are not used the gatekeeper should record the time of arrival and departure of each worker.
How The Individual Vouch The Wages And Salaries In Order To See Whether The Cash Is Properly Given To Employees?
Before vouching the amount of wages paid an enquiry should be made in respect of the system of preparation of time keeping and pay roll records and the procedure of making payments and the adequacy or otherwise of the system of internal control. A second system of internal control requires the segregation of duties in respect of preparation of wages records in three phases each phase of work to be performed by the account payable as wages and payment of wages. If the system of internal check is sound a test check of the wages sheets or wages book may be done. However if the system of internal check is loose then the auditor should carry out an exhaustive work of checking.
The chances of frauds or errors could be in following areas.
• Possibility of a clerical error.
• Fraud or errors in respect of time and piece work records.
• The inclusion of dummy names or ghost labor in the wages sheets or wages book.
A brief sketch of workable sound system to be followed relating to preparation of wages sheets is as under:
Where mechanical devices are not used the gatekeeper should record the time of arrival and departure of each worker. Another similar record should be maintained by the foreman.
The chances of frauds or errors could be in following areas.
• Possibility of a clerical error.
• Fraud or errors in respect of time and piece work records.
• The inclusion of dummy names or ghost labor in the wages sheets or wages book.
A brief sketch of workable sound system to be followed relating to preparation of wages sheets is as under:
Where mechanical devices are not used the gatekeeper should record the time of arrival and departure of each worker. Another similar record should be maintained by the foreman.
