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?BondBeebe
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.
For more in this series, see:
- Question 12: Do you Charge for Travel Time?
- Question 11: Will we Receive Progress Reports?
- Question 10: Do you Change a Flat-Rate Fee per audit or an Hourly Rate?
- Question 9: Have you Done Payroll Audits for our Industry or Similar Industries?
- Question 8: Do you Have a Dedicated Payroll Audit Staff?
- Question 7: What are the Qualifications of Your Payroll Audit Staff?
- Question 6: How Long Does Your Typical Audit Take?
- Question 5: Do You Audit All Employees %100 or Do You Test Employees?
- Question 4: What is the Relationship Between Your Audit Findings and Your Audit Costs?
- Question 3: How Many of Your Payroll Audits do you Perform?
- Question 2: How Many Audits do you Perform?
- Question 1: How Many Years Have you Been Doing Payroll Audits?