Audit Substantive Test

Audit Substantive Test

Substantive procedures (or substantive tests) are those activities performed by the auditor to detect material misstatement or fraud at the assertion level.

The different assertions of balances are:

• completeness,
• existence, rights ,
• obligations,
• valuation & allocation, and
• presentation & disclosure.

Those for transactions are:

• occurrence (validity),
• completeness,
• accuracy,
• cut-off and
• classification.

Management implicitly assert that account balances and underlying classes of transaction do not contain any material misstatements: in other words, that they are materially complete, valid and accurate. Auditors gather evidence about these assertions by undertaking activities referred to as substantive procedures.