Controls testing monthly payroll process Procedure performed: Select a sample of monthly payruns throughout the year ended 30 June 2022 and inspect the electronic funds transfer report for dual authorisation by the payroll manager and financial controller. The tolerable deviation rate is 3%.

GCA sampling methodology: Control frequency Minimum sample size Daily 25 Weekly 12 Monthly 4 Quarterly 2

Results:

Sample # Month Amount Dual authorisation? Deviation? 1 October 2021 $123,476 Yes No 2 January 2022 $121,960 No Yes 3 July 2022 $134,586 Yes No

Conclusion: The total deviation amount is $121,960, which is greater than overall materiality. Therefore, the control is not operating effectively a) Explain three (3) errors in the work performed by the audit junior. Outline the required correction for each error.