What it is
A staffing firm runs high-volume payroll and billing with thin margins, so the audit focuses on timesheets, unbilled revenue, accrued payroll and the workers compensation reserve. Fictitious workers and cutoff errors are the common fraud and error patterns.
The program is a five-tab workbook covering revenue and receivables, payroll and payroll taxes, workers compensation and insurance, and financing and compliance, with sign-off columns and tie-outs.
When to use it
- Auditing a temporary, contract or managed services staffing firm.
- Testing the year-end accrued payroll and unbilled receivable.
- Evaluating the actuarial work on the workers compensation reserve.
What’s inside
- Timesheet-to-invoice and unbilled revenue procedures
- Principal versus agent evaluation and customer concentration steps
- Payroll existence, accrual and payroll tax remittance tests
- Workers compensation reserve, specialist and collateral procedures
Standard cited
This template follows ASC 606 / AU-C 540. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use. See AU-C 540 explained.
Questions
How is a fictitious worker found?
Test the worker master to identification and bank data outside the payroll file, and look for duplicate accounts and addresses. The program lists the steps.
Gross or net revenue?
It depends on control of the service before transfer. The program has a step that evaluates it by stream under ASC 606.
Who estimates the workers compensation reserve?
Usually an actuary or the carrier’s administrator. The auditor tests the data and evaluates the specialist under AU-C 620.
Related templates
- Staffing Accrued Payroll and Unbilled Revenue Cutoff
- Payroll Testing Workpaper
- Audit Program: Payroll
- Cutoff Testing Workpaper (Sales, Purchases, Inventory)
Last updated 11/05/2026. All free templates.