Payroll Audit Resources

Payroll is often the largest single cost in an organization, and it affects every employee. Errors damage trust quickly, and payroll fraud — ghost employees, unauthorized pay increases, or payments to leavers — can continue for years if controls are weak.

A payroll audit typically reviews employee master data, the starter, mover and leaver process, approvals for pay changes, payroll calculation and processing, statutory deductions, payment release and reconciliations between HR, payroll and finance. Where payroll is outsourced, auditors also review the provider's controls and reporting.

Key risks include employees paid after leaving, duplicate employees or shared bank accounts, unauthorized changes to salary or bank details, incorrect deductions, weak segregation between HR and payroll, and payroll reports that are approved without review.

The resources below help you plan and perform a practical payroll audit. The guide explains the approach step by step with a worked example, and the checklist gives you structured coverage of controls, evidence and red flags. Related segregation of duties and fraud resources help you test the highest-risk areas.