Company: ADP
Filing Date: 2025-08-06
Form Type: 10-K
Source: 0000008670-25-000037
Chunk: 88

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-08-06
Form: 10-K
Item: Item 8
Chunk 88
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 testing of the completeness and accuracy of client funds obligations reported as of period end, including identifying the manual adjustments identified in management’s reconciliation process. 

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the Company's client funds obligations included the following, among others:

•We tested the effectiveness of general information technology controls over the applications relevant to the money movement reconciliation process.

•We tested the effectiveness of (1) management’s controls over the client funds obligations data reconciliation and (2) management’s control to reconcile the consolidated client funds obligations to the corresponding consolidated funds held for clients balance.

•We involved data specialists to (1) independently reperform management’s client funds obligations reconciliation and (2) perform data analyses to identify and evaluate recurring and new adjustments to the data extracts in the current period.

•For a selection of client funds obligations transactions, we evaluated whether the funds were impounded prior to June 30, 2025, agreed the liability to the corresponding asset balance, and evaluated whether the funds were properly included or excluded from the client funds obligations.

•We made a selection of adjustments identified by management’s reconciliation of the transactional data to the client funds obligations balance reported at period end and evaluated whether the adjustments were supported and appropriate to reconcile and validate the client funds obligations balance reported at period end.

•We made a selection of disbursements to third parties subsequent to the balance sheet date to evaluate whether they were properly included or excluded from client funds obligations.

•We tested the Company’s reconciliation of the consolidated client funds obligations to funds held for clients.

45

/s/ Deloitte & Touche LLP

Morristown, New Jersey

August 6, 2025 

We have served as the Company’s auditor since 1968.

46

Automatic Data Processing, Inc. and Subsidiaries

Statements of Consolidated Earnings

(In millions, except per share amounts)

Years ended June 30,202520242023REVENUES:  Revenues, other than interest on funds held      for clients and PEO revenues$12,692.2 $11,953.6 $11,222.0 Interest on funds held for clients1,189.1 1,024.7 813.4 PEO revenues (A)6,679.6 6,224.3 5,976.8 TOTAL REVENUES20,560.9 19,202.6 18,012.2