What is substantive procedures

Question

Accepted Answer

Substantive procedures are audit procedures designed to obtain evidence to detect material misstatements in financial statements.

Substantive procedures are performed to obtain direct evidence about the completeness, accuracy, and validity of the data produced by the client's accounting system.
These procedures are used to test account balances, transactions, and disclosures.
Examples of substantive procedures include analytical procedures, tests of details of transactions, and tests of details of balances.
Substantive procedures are used in conjunction with tests of controls to form an overall opinion on the financial statements.
The extent of substantive procedures depends on the assessed level of risk and materiality of the account balance or transaction being tested.

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