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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.


Definitions:

Average Change

The mean difference between successive measurements in a series of data points, indicative of a trend or variation over time.

Independent Variable

A variable in an experiment or study that is manipulated or changed to observe its effect on the dependent variable.

Dependent Variable

The variable in a study or experiment that is expected to change as a result of variations in the predictor variables.

Abdominopelvic Cavity

A body cavity that consists of the abdominal cavity and the pelvic cavity, housing organs such as the stomach, liver, intestines, and reproductive organs.

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