Tests of Details

Tests of details are usually categorized into two types:

1. Substantive Tests of Transactions - test for errors or fraud in individual transactions.

EX: An auditor may examine a large purchase of inventory by testing that the cost of the
goods included on the invoice is properly recorded in the inventory and and accounts
payable accounts.

2. Tests of details of account balances and disclosures - focus on the items that are
contained in the financial statement account balances and disclosures.
EX: The auditor may want to test accounts payable by examining a sample of individual
invoices that make up the ending balance of accounts payable.