A Payroll Audit Checklist is an essential tool to ensure that payroll processes are accurate and compliant with regulations. The checklist helps to identify areas of risk, including potential errors in employee data, incorrect payment amounts, and any discrepancies between payroll records and official documents. Regular auditing helps minimize the risk of costly penalties due to non-compliance or incorrect payments. It also helps to ensure that employees are paid accurately and on time, which is critical for staff morale and retention.