Importance The article investigates the specifics of internal controls over payroll settlements in conditions of automation for auditing purposes. It considers the nature of internal controls, the impact of information technology on the elements of internal control, preconditions for accounting (financial) statements preparation, the scope of tests of controls. Objectives The study aims to develop tests of internal controls for auditing purpose on the case of automated accounting system for payroll settlements, and to improve the methodology for internal control testing, taking into account the specifics of automated data processing used by the auditee. Methods The study rests on methods of analysis and synthesis, grouping, risk assessment of controls. Results I investigated risk areas and errors that may occur in conditions of using computer data processing techniques. The offered recommendations for internal control system evaluation will enable to identify flaws in accounting, where errors and law offences are likely to occur. Based on the developed tests, the auditor can determine the scope, nature and timing of audit procedures at the planning stage. The developed tests of internal controls may serve as methodological support to the audit planning process exercised by individual auditors and audit organizations. Conclusions and Relevance The use of information technology is an integral part of organization of accounting and control at the modern enterprise. It necessitates improvement of audit procedures that are intended to search for errors, which may occur in the information environment of the auditee.
Keywords: internal control system, controls, control environment, automation
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