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Discuss the Purposes of (1) Substantive Tests of Transactions, (2)

question 49

Essay

Discuss the purposes of (1) substantive tests of transactions, (2) tests of controls, and (3) tests of details of balances. Give an example of each.


Definitions:

Control Equation

Need for Action = Desired Performance - Actual Performance.

Control Process

A systematic approach to managing and monitoring activities to ensure they meet the goals and standards of the organization.

Market Control

The ability of a single entity or a few entities to significantly influence the conditions or terms in a particular market.

Input Standards

Pre-defined criteria or benchmarks used to measure the quality, quantity, or timeliness of inputs in a production or manufacturing process.

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