PERFORMING

SUBSTANTIVE TESTS
Chapter 8

WHAT ARE SUBSTANTIVE

TESTS?
Substantive tests are audit procedures designed to:
substantiate the account balances
detect material misstatements

Thesetestsare needed as evidence to support the assertion

that the financial records of an entity are complete, valid,
and accurate.
Two types of substantive tests
1. Analytical procedures
2. Test of details

ANALYTICAL PROCEDURES
Analytical procedures may be used in the planning, testing and

overall review stages in the audit. Analytical procedures

applied as substantive tests enable the auditor to obtain
corroborative evidence about a particular account. This
approach involves comparison of financial information with
auditors expectations to determine the reasonableness of an
account balance reported in a financial statement.