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How do I verify the amount of wages paid to seasonal labourers while auditing the books of a Const…
How do I verify the amount of wages paid to seasonal labourers while auditing the books of a Construction Company.
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How do I verify the amount of wages paid to seasonal labourers while auditing the books of a Const…
How do I verify the amount of wages paid to seasonal labourers while auditing the books of a Construction Company.
In the instance of wages paid to Seasonal Labourers, you can consider the following points:
(i) Ascertain and evaluate the internal control system for recruitment and usage of seasonal labourers.
(ii) Examine that these labourers are hired on proper authority and the rates of pay are authorized at appropriate levels.
(iii) Ensure that the attendance is properly checked by the Time Keeping Department.
(iv) Check that the certificate regarding work done by the labourers has been given by the proper person, in case the labourers have been appointed on a per piece basis.
(v) Check the computation of wages payable to the labourers, after taking into account the deductions.
(vi) Confirm that all the payments to the labourers have been acknowledged.
(vii) See the time and job records, to ensure that the labourers have been paid for time worked. See the treatment of abnormal idle time.
(viii) Reconcile the number of seasonal labourers on payroll as per the Personnel Department’s records vis-à-vis the number of labourers to whom the wages have been paid, to ensure that there are no ghost workers. This assumes greater importance, if the seasonal labourers are hired on temporary basis, and not on permanent payroll
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