Hiring a Payroll Auditing Firm, Question 13: What is the Typical Time Between the Assignment of a Payroll Audit to the Auditor, it’s Performance and Delivery of the Audit Report?

Posting by Larry Beebe, CPA

Most plans assign payroll audits to auditors in batches. The audit firm then groups out-of-town audits based on geographic areas- local audits are assigned based on the availability of audit staff. The plan and audit firm should agree on the time allowed to accomplish each batch assigned.

Once audit field work is completed, the goal of the audit firm should be to deliver reports with no findings within a week. Audits that have field work completed with no outstanding issues should be delivered within a month. Those completed that has outstanding issues should be delivered one month after all issues are resolved.

Often the delay in delivering a report is caused by the employer, who has been audited, disputing a finding or findings in the report. If the deficient hours shown in the report are subtotaled by type the rest of the audit can be agreed to and resolved leaving only the disputed item or items for final resolution.

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