Identify Whether the Following Tests Are Substantive Analytical Procedures, Tests

question 20

Essay

Identify whether the following tests are substantive analytical procedures, tests of details of transactions, or tests of details of account balances.
1)Trace a sample of payroll checks to the master employee list to verify occurrence.
2)Recalculate the mathematical accuracy of a sample of payroll checks.
3)Test a sample of bank reconciliations for the payroll bank account.
4)Estimate sales commissions by applying commission formulas to recorded sales totals.
5)Compare amounts accrued to supporting documentation, such as payroll tax returns.
6)Compare payroll costs as a percentage of sales to industry data.

Identify the determinants of investment and the concept of the investment demand curve.

Recognize how shifts in the aggregate demand and aggregate expenditure curves affect the economy.

Understand the dynamics of the consumption function, including the marginal propensity to consume (MPC) and save (MPS).

Recognize the role of autonomous spending in shifting the aggregate demand and expenditure curves.

---

Definitions:

Sensorineural Deafness

A type of hearing loss resulting from damage to the inner ear or to the nerve pathways from the inner ear to the brain.

Hair Cells

Sensory receptors located in the inner ear that are crucial for hearing and maintaining balance.

Clairvoyance

The claimed ability to gain information about an object, person, location, or physical event through means other than the known human senses.

Sensory Organs

Structures specialized in detecting changes in the environment and transmitting neural information to the brain for processing, such as eyes, ears, and skin.