The document discusses auditing the payroll and personnel cycle. It identifies key accounts in the cycle including accrued wages, cash, withheld taxes, accrued payroll tax expense, and their transactions. Business functions like hiring, timekeeping, payroll preparation, payment and tax filings are described. The audit process includes understanding controls, assessing risks, designing tests of controls and balances. Analytical procedures to identify misstatements are outlined. Tests of details are designed for liability and expense account balances cut-off and accuracy.