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Checklist: How to Prepare for a Payroll Compliance Audit

Checklist: How to Prepare for a Payroll Compliance Audit

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Forensic

I.    When you receive the Audit Notification Letter

  • Identify responsible parties and determine who will need to be involved in the audit (i.e. Human Resources, Payroll, Labor Relations, Accounts Payable)
  • Assign a contact to coordinate audit scheduling, document production, and correspondence
  • Be prepared to respond to requests for other information from the Audit firm during scheduling; e.g. total number of employees, number of employees reported to the Trust(s), other Trusts to whom the Employer reports, etc.
  • Review the list of required documents and determine location(s) and format(s) of the documents/information requested by the auditor
  • Gather any questions for the Auditor firm
  • Coordinate with the Auditor to determine mutually agreeable date, time and location for the audit and confirm document location(s) and format(s)
  • Communicate concerns regarding proprietary information 

II.   Document Gathering 

  • Use the notification letter as a checklist
  • Inventory documents for completeness
  • Request missing bargaining agreements from the Union or missing remittance forms from the Trust Administrator
  • Discuss any unavailable documents with the Auditor
  • When possible, provide documents electronically rather than copies

III.  Appointment Confirmation

  • Review with the Auditor documents listed in the notification letter to confirm format and availability
  • Advise auditor of parking, building access, limitations of available space, or any other conditions that may impact the audit

IV.  Final Preparation 

  • Organize hardcopy documents chronologically by type for inventory by the Auditor at the beginning of the audit

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Forensic