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in this video im going to tell you how to do a payroll walk through payroll tends to be one of the most important areas in an audit so understanding the related internal controls is absolutely critical quick overview of how payroll works obviously people are hired and then once theyre heard theres a payroll file and in that payroll file theres not theres an authorization for the payroll rates those rates are keyed in into the payroll software and usually the bank account number for the employee is also keyed into the software so that they can be paid electronically payroll normally occurs once every two weeks youll see different periods for different organizations but usually its every week or every two weeks most of the time i see it occurring every two weeks so once the employees hired they obviously start working and as they work usually the time for that person is inputted into the software in some manner some organizations have electronic time clocks some have manual system