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Substantive Tests

0 Votes
Substantive Tests

How can one understand and apply substantive tests to a scenario or a process?

November 17th 2014 AN ACCA USER 340 Points 1 Flag

4 Replies

+4 Votes

Substantive tests are performed when no controls exist and where they are not operating effectively. It is what you are doing and why you are doing it. For example, to confirm the existence of a building by inspecting the property.

November 26th 2014 AN ACCA USER 310 Points
+2 Votes

The way you look at things like invoices to check amount, NCA to check the physical existence etc.
Substantive procedure or tests very much look at the numbers or on an asset or details but not on control.

Example: Like to check the completeness of payables, inspect the cash book payments in the post year end periods for any significant payment to suppliers to ensure the year end liability is accurately recorded.

November 25th 2014 AN ACCA USER 700 Points
0 Votes

substantive is what ?? i think it is a way of collecting n obtaining evidences through taking action against system or mechanisms have been put in place to facilitate operation smoothly as well as details which let the auditors get informed about the operation relating to F/S.

November 25th 2014 AN ACCA USER 1,390 Points
0 Votes
what is the difference between substantive test and test of control ???
March 13th 2015 AN ACCA USER 340 Points