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Chapter 6 3 4

Procedures

3.1 Sources of audit evidence

Source

Substantive
Tests of control
procedures

Analytical
Tests of detail
procedures

Tests of control: Tests of control are designed to evaluate the
operating effectiveness of controls in preventing or detecting and
correcting material misstatement.

Substantive procedures: Substantive procedures are designed to
detect material misstatement at the assertion level.

Tests of detail: Tests of detail to verify individual transactions and
balances.

Substantive analytical procedures: Analytical procedures involve the
evaluation of financial information through analysis of plausible
relationships among both financial and non-financial data. As a
substantive procedure they help test the figures in the financial
statements for material misstatement.

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