Moving a little away from automated audits in this post, with respect to the payroll review in the Indian context you have a few India specific risks to consider, a key one is employee back ground checks. This is especially important when it comes to Financial services and given the limitations that are imposed in the absence of a centralized database having the right process is crucial.
Typically, this is outsourced to a third party, as result ensuring there is adequate oversight over the third party and ensuring red flags are reported to the appropriate level become essential. In my experience a lot of companies have this process just like a pre-employment medical check but no one really know how effective the review is what action if any is taken on the results. Additionally, given the attrition rates and difficultly in hiring talent sometimes the management may just overlook these red flags.