Identify Whether the Following Tests Are Substantive Analytical Procedures, Tests

question 10

Essay

Identify whether the following tests are substantive analytical procedures, tests of details of transactions, or tests of details of account balances:
1)Test a sample of purchase requisitions for proper authorization.
2)Test transactions around year-end to determine if they are recorded in the proper period.
3)Review results of confirmation of selected accounts payable.
4)Compare payables turnover to previous years' data.
5)Obtain selected vendors' statements and reconcile to vendor accounts.
6)Compare purchase returns and allowances as a percentage of revenue or cost of sales to industry data.

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Definitions:

Poorest Fifth

A term used to describe the bottom 20% of the population in terms of income or wealth distribution.

Income Dropped

A decrease in the amount of money received by an individual, household, or group over a certain period.

Nebraskan Meatpacking Plants

Industrial facilities in Nebraska, known for processing and packing meat, which have significant economic and social impacts on local communities.

Mexican Immigrants

Individuals from Mexico who have moved to another country, often seeking better economic opportunities or escaping difficult conditions.