"Review monthly payroll charges, compare this to the prior year and budgets and discuss with management any significant variances."
Mam i have three doubts with regards to this:
1st- is there any specific reason why my kit has used the word "VARIANCES" and not "DIFFERENCES"
2nd- how will this process be really carried out? like inspecting january payroll expense of 2009 v/s 2008? and similarly Feb 2009 v/s 2008?
3rd- any specific reason for using "PAYROLL CHARGES" and not "PAYROLL EXPENSES"
thank you so much maam for all your efforts and time.
Ask the Tutor ACCA AA
Payroll expense-substantive analytical procedure
4y ago#11 - variance conveys the idea that the difference is between actual or expectation (e.g. in performance management) - but difference will do just fine for AA.
2 - yes - so this will take account of seasonal variations and the fact that typically February is only 4 weeks whereas March is 5 weeks.
3 - I personally don't like "charge" - "expense" is clearer and the more current term to use.
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