Which Are Substantive Procedures?
Substantive Procedures Are the Method or Audit Tests Designed by an Auditor to Evaluate the Financial Statements of the Company Which Require an Auditor to...
Substantive procedures are the method or audit tests designed by an auditor to evaluate the financial statements of the company which require an auditor to create conclusive evidence for verifying the completeness, accuracy, existence, occurrence, measurement, and valuation (audit assertions) of the financial records ...
What are the types of substantive procedures?
There are two categories of substantive procedures - analytical procedures and tests of detail. Analytical procedures generally provide less reliable evidence than the tests of detail.
What are substantive procedures examples?
- Bank confirmation.
- Accounts receivable confirmation.
- Inquire of management regarding the collectibility of customer accounts.
- Match customer orders to invoices billed.
- Match collected funds to invoices billed.
- Observe a physical inventory count.
- Confirm inventories not on-site.
Sarah Jenkins is a veteran tech journalist with over 12 years of experience covering artificial intelligence, mobile innovations, and digital ethics. Her insights have appeared in leading technology publications worldwide.
