Audit the inputs, output and handoffs

What you will practice

• Distinguish preventive and detective controls.
• Follow one change from authorization to payment.
• Document a reconciliation exception until resolved.

Ask what could go wrong

For each handoff, name a plausible failure and the control that would prevent or detect it. A permission restriction can prevent an unauthorized change; a reconciliation can detect a difference after processing. A control is only useful if someone operates it and retains evidence.

Follow one change end to end

Trace a fictional rate change through authorization, effective date, master-file entry, payroll preview, final result and ledger. Confirm that the final run uses the reviewed version. If a material input changes after review, the old approval does not prove the new calculation was reviewed.

Review independently where practical

Separate preparation, approval and release responsibilities where the organization can do so. If a small team cannot fully separate duties, identify a specific compensating review and document it. Shared logins weaken attribution; access should be appropriate to the actual role.

Close the exception, not the spreadsheet

An exception record should identify the difference, affected scope, owner, required action and proof of resolution. Zeroing an unexplained balance removes the visible symptom without resolving its cause. Limit the personal data included in audit evidence and use approved secure channels.

Review before you move on

• Name the risk and the control.
• Retain who reviewed which version and when.
• Reconcile final results to reviewed inputs.
• Resolve differences with evidence, not plug entries.

Official references for this lesson

• Official CPP audits domain
• Official detailed CPP KSA outline
• IRS recordkeeping context