As part of your audit of the payroll for Payroll Company Limited. You conducted tests of payroll transactions for the month of July 2020 and the employee master file for the same period. The tests conducted and the results found are described below:

1. Conducted a duplicates test on employee number in the transaction file. You found that one employee had been paid twice, using cheque numbers 3456 and 6789.

2. Checked the calculation of "pay per period" (calculated as total salary divided by 12) in the employee master file. You found that for two employees these calculations did not match. Employee #105 and Employee #21 had a pay of $400 and $150 higher than the calculation respectively.

Required:

For each audit test:

i) Describe the audit assertion(s) associated with your audit test.

ii) Discuss the implications of the findings on the audit process or on specific audit procedures.

iii) Discuss recommended actions based on your findings (consider both controls and substantive tests).