Course Introduction
The Executive Compensation and Remuneration Auditing Training Course provides a practical framework for auditing executive salaries, bonuses, incentives, allowances, benefits, severance arrangements, deferred compensation, equity-related remuneration, and other forms of executive pay. The course helps participants assess whether executive remuneration is properly authorized, accurately calculated, appropriately disclosed, consistent with approved policies, and supported by reliable governance and payroll documentation.
The course examines the complete executive remuneration lifecycle from remuneration strategy and policy approval through employment terms, compensation committee decisions, performance assessment, incentive calculations, payroll processing, benefits administration, payment, accounting, and disclosure. Participants learn how to trace executive compensation to employment contracts, board or committee resolutions, approved remuneration structures, performance records, payroll registers, payment records, and financial statements.
A major component of the training focuses on testing the accuracy and validity of executive compensation calculations. Participants learn to independently recalculate salaries, bonuses, commissions, long-term incentives, allowances, benefits, severance payments, deferred compensation, and other remuneration components. The course also addresses performance conditions, incentive thresholds, clawbacks, caps, vesting arrangements, effective dates, retroactive adjustments, and exceptional remuneration approvals.
The program develops practical skills for evaluating remuneration governance and control effectiveness. Participants examine the roles of boards, remuneration committees, human resources, finance, payroll, internal audit, and executive management in establishing and administering compensation arrangements. Particular attention is given to authorization controls, conflicts of interest, segregation of duties, management override, related-party arrangements, policy exceptions, and the integrity of performance information used to determine variable compensation.
Fraud and financial reporting risks are integrated throughout the course. Participants examine risks involving unauthorized executive payments, manipulated performance results, inappropriate bonuses, undisclosed benefits, related-party transactions, preferential arrangements, excessive allowances, altered compensation records, and inappropriate severance or termination payments. The training also addresses payroll technology, automated remuneration calculations, access controls, data analytics, cybersecurity, artificial intelligence, and emerging risks associated with digitally managed compensation.
Through practical exercises and case studies, participants develop the ability to conduct end-to-end audits of executive compensation and remuneration using governance review, controls testing, contract inspection, independent recalculation, payroll reconciliation, data analytics, transaction tracing, and substantive procedures. Participants learn to identify financial exposure, evaluate compliance with approved arrangements, document defensible audit evidence, assess remuneration-related disclosures, and develop recommendations that strengthen governance, transparency, accountability, and compensation controls.
Duration
5 days
Who Should Attend
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Internal auditors responsible for executive compensation, payroll, employee benefits, and remuneration audits.
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External auditors reviewing executive remuneration, payroll expenses, related-party transactions, and financial disclosures.
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Audit committee members involved in oversight of executive compensation and remuneration governance.
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Board and remuneration committee professionals responsible for reviewing executive pay arrangements.
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Finance directors and financial controllers overseeing executive compensation accounting and reporting.
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Human resources and compensation professionals designing and administering executive remuneration structures.
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Payroll managers responsible for processing executive salaries, bonuses, allowances, and benefits.
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Risk and compliance professionals assessing executive remuneration, governance, and control risks.
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Fraud risk professionals investigating inappropriate executive payments, incentive manipulation, and unauthorized compensation.
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Internal control specialists designing and testing controls over executive remuneration processes.
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Data analysts supporting compensation analytics, payroll testing, benchmarking, and exception monitoring.
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IT auditors evaluating payroll systems, compensation applications, automated calculations, and access controls.
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Corporate governance professionals reviewing remuneration policies, approvals, disclosures, and accountability arrangements.
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Legal, company secretarial, and governance professionals involved in executive contracts and remuneration approvals.
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Audit, finance, HR, payroll, risk, governance, and compensation professionals seeking practical executive remuneration auditing skills.
Course Objectives
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Develop a comprehensive understanding of executive compensation structures, remuneration governance, risks, controls, accounting, and audit procedures.
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Evaluate executive employment contracts, remuneration policies, approval frameworks, performance conditions, incentive arrangements, and benefit provisions.
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Independently recalculate executive salaries, bonuses, incentives, allowances, benefits, severance payments, and other remuneration components.
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Test executive compensation for proper authorization, contractual compliance, accurate calculation, appropriate payment, and correct accounting treatment.
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Evaluate board and remuneration committee controls over executive pay decisions, performance assessments, incentive approvals, and exceptional compensation.
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Identify unauthorized payments, duplicate compensation, inappropriate benefits, manipulated incentives, undisclosed arrangements, and excessive remuneration.
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Reconcile executive remuneration records with payroll, employment contracts, board approvals, bank payments, accounting records, and financial disclosures.
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Apply data analytics to identify unusual compensation patterns, unexpected changes, abnormal bonuses, duplicate payments, and unexplained remuneration adjustments.
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Evaluate related-party, conflict-of-interest, management override, disclosure, and financial reporting risks associated with executive compensation.
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Prepare evidence-based audit findings and recommendations that strengthen remuneration governance, transparency, accountability, payroll controls, and financial reporting.
Comprehensive Course Outline
Module 1: Executive Compensation and Remuneration Audit Fundamentals
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Understanding executive salaries, bonuses, incentives, benefits, allowances, deferred compensation, severance, and other remuneration arrangements.
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Identifying audit assertions involving occurrence, accuracy, authorization, completeness, classification, valuation, and disclosure.
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Mapping executive remuneration from policy and contractual arrangements through performance assessment, payroll, payment, accounting, and reporting.
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Establishing a risk-based audit approach for executive compensation and remuneration processes.
Module 2: Remuneration Governance, Policies, and Approval Frameworks
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Evaluating remuneration policies, board-approved compensation structures, remuneration committee mandates, and executive approval processes.
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Assessing roles and responsibilities of boards, committees, management, human resources, finance, payroll, and internal audit.
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Testing controls over executive compensation approvals, policy exceptions, changes to remuneration packages, and management override.
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Evaluating conflicts of interest, segregation of duties, related-party risks, and governance controls surrounding executive pay decisions.
Module 3: Executive Contracts and Fixed Compensation
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Auditing executive employment contracts for salary terms, allowances, benefits, eligibility, effective dates, and approved remuneration conditions.
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Testing fixed salaries against contracts, board resolutions, payroll records, approved salary structures, and authorized amendments.
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Independently recalculating executive compensation following promotions, salary reviews, contract amendments, or changes in employment status.
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Identifying unauthorized salary increases, retrospective adjustments, unsupported allowances, duplicate payments, and contractual inconsistencies.
Module 4: Bonuses, Incentives, and Performance-Based Remuneration
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Auditing annual bonuses, commissions, incentives, performance awards, and other variable compensation arrangements.
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Testing performance metrics, achievement calculations, eligibility requirements, thresholds, caps, approval conditions, and payment formulas.
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Independently recalculating incentive payments using approved performance results, remuneration policies, and executive agreements.
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Identifying manipulated performance measures, unsupported bonuses, unauthorized incentives, calculation errors, and inappropriate overrides.
Module 5: Executive Benefits, Allowances, and Additional Compensation
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Auditing executive allowances, vehicles, housing, travel, insurance, retirement benefits, medical benefits, and other executive-related compensation.
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Testing benefit eligibility, valuation, authorization, supporting documentation, payroll treatment, and appropriate accounting classification.
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Evaluating special benefits, exceptional arrangements, retention payments, relocation packages, and other non-standard compensation.
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Identifying unapproved benefits, personal expenses, duplicate reimbursements, inappropriate allowances, and undisclosed compensation arrangements.
Module 6: Payroll, Payment, and Accounting Controls
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Reconciling executive remuneration with payroll registers, employee master data, bank payment files, general ledger records, and compensation schedules.
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Testing payroll processing, payment authorization, bank-account controls, manual adjustments, off-cycle payments, and exceptional compensation.
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Evaluating accounting treatment for executive salaries, bonuses, benefits, deferred compensation, termination payments, and related liabilities.
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Testing period-end accruals, cut-off, compensation provisions, payroll liabilities, and financial reporting balances.
Module 7: Executive Remuneration Fraud, Conflicts, and Related-Party Risks
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Identifying fraud risks involving unauthorized compensation, manipulated incentives, false benefits, preferential arrangements, and management override.
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Investigating potential conflicts of interest, related-party remuneration, undisclosed benefits, unusual payments, and exceptional executive transactions.
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Applying contract inspection, board-minute review, transaction tracing, payroll analysis, confirmation, data analytics, and supporting-document testing.
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Quantifying inappropriate payments, financial exposure, recoverable amounts, and potential control weaknesses arising from remuneration irregularities.
Module 8: Technology, Data Analytics, and Automated Compensation Controls
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Auditing payroll and human-resource systems supporting executive compensation, benefits, incentive calculations, and remuneration reporting.
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Using data analytics to identify unusual executive pay changes, abnormal bonuses, duplicate transactions, unexpected allowances, and compensation anomalies.
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Evaluating automated controls over salary rates, incentive formulas, approval workflows, benefit calculations, and payroll interfaces.
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Reviewing user access, privileged permissions, audit trails, system changes, cybersecurity, data privacy, and emerging artificial intelligence risks.
Module 9: Remuneration Reporting, Disclosure, and Audit Evidence
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Evaluating executive remuneration information presented in financial statements, governance reports, remuneration reports, and related disclosures.
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Reconciling disclosed compensation with payroll records, contracts, accounting records, board approvals, and underlying remuneration schedules.
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Assessing evidence supporting remuneration calculations, performance awards, benefits, deferred compensation, and termination arrangements.
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Evaluating completeness, accuracy, consistency, transparency, documentation quality, and management representations relating to executive remuneration.
Module 10: Integrated Executive Compensation and Remuneration Audit Case Studies
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Performing an end-to-end executive remuneration audit covering contracts, salaries, bonuses, incentives, benefits, approvals, payroll, payments, and reporting.
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Applying controls testing, substantive procedures, independent recalculation, transaction tracing, reconciliation, confirmation, and data analytics.
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Investigating complex cases involving incentive manipulation, unauthorized compensation, related-party arrangements, management override, and undisclosed benefits.
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Preparing audit findings, root-cause analysis, financial impact assessments, recommendations, management responses, and follow-up procedures.a
Training Approach
This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.
Tailor-Made Course
This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: training@upskilldevelopment.com Tel: +254 721 331 808
Training Venue
The training will be held at our Upskill Training Centre. We also offer training for a group (at a discount of 10% to 50%) at requested location all over the world. The Onsite course fee covers the course tuition, training materials, two break refreshments, buffet lunch, airport transfers, Upskill gift package, and guided tour.
Visa application, travel expenses, dinners, accommodation, insurance, and other personal expenses are catered by the participant
Certification
Participants will be issued with Upskill certificate upon completion of this course.
Airport Pickup and Accommodation
Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: training@upskilldevelopment.com, +254 721 331 808
Terms of Payment:
Unless otherwise agreed between the two parties’ payment of the course fee should be done 3 working days before commencement of the training so as to enable us to prepare better.
