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Checklist: How to Prepare for a Payroll Compliance Audit

Checklist: How to Prepare for a Payroll Compliance Audit

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.

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Forensic
  • 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. 
  1. 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.
  1. 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.
  1. Final Preparation
  • Organize hardcopy documents chronologically by type for inventory by the Auditor at the beginning of the audit.

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Forensic