Reference no: EM133105024

Question - Let's say you are a part of the audit team for a Resort and Restaurant establishment. Your engagement senior assigned you to audit their payroll transactions. You noted the excessive overtime hours of its admin and accounting personnel, who are also in charge of personelling in the absence of any formal HR position. In your inquiry, the admin and accounting supervisor and staff said that their overtime is due to processing voluminous market purchases of kitchen and pantry supplies. You then requested their time record, which turns out to be a manual logbook kept and maintained by the security guard. Given these information, how should you proceed in your audit response?