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    Trâm Lê
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    Tests of controls evaluate the effectiveness of internal controls, and are performed during the audit to assess control risk. Substantive tests examine account balances and transactions to detect misstatements, and are the third step in the audit process aimed at controlling detection risk. Tests of controls are done at an interim date and focus on procedures, while substantive tests are performed at the balance sheet date and examine account balances on a monetary basis such as inventory counts.

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    Tests of controls evaluate the effectiveness of internal controls, and are performed during the audit to assess control risk. Substantive tests examine account balances and transactions to detect misstatements, and are the third step in the audit process aimed at controlling detection risk. Tests of controls are done at an interim date and focus on procedures, while substantive tests are performed at the balance sheet date and examine account balances on a monetary basis such as inventory counts.

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    kiểm toán

    Uploaded by

    Trâm Lê
    Tests of controls evaluate the effectiveness of internal controls, and are performed during the audit to assess control risk. Substantive tests examine account balances and transactions to detect misstatements, and are the third step in the audit process aimed at controlling detection risk. Tests of controls are done at an interim date and focus on procedures, while substantive tests are performed at the balance sheet date and examine account balances on a monetary basis such as inventory counts.

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    of 1

    2. Please differentiate Tests of controls and Substantive Tests Give examples.

    TOC Substantive Test


    Test of controls is the testing tool for The Substantive test is the control mechanism
    assessing control risk of controlling detection risk
    The second step in audit testing The third step in audit testing.
    Test of controls can be classified into two
    Substantive test can be classified into three
    types: Concurrent test and planned tests of
    types
    control
    It determines effectiveness and efficiency of
    It determines fairness of financial statements
    internal control
    Test of control is the police end procedures It is done on the basis of monetary error
    Substantive test is done on the balance sheet
    Tests of control are done in interim date
    date
    Ex: The auditor just documents about
    purchasing system of the client as the
    Ex: Watch the physical inventory count as it
    purchase is part of the significant process in
    happens for each ending period
    the operating expenses, inventories as well as
    fixed assets sections.

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