Question

I need the full brief for the answer my subject is Auditing

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Q3- What is meant by substantive procedures in auditing?              

Answer 1

Answer:

Meaning of substantive procedures in auditing:

Substantive procedures are an audit procedure designed to detect material misstatement at the assertion level, substantive comprise of a test of details i.e. a test of classes of transactions, account balances & disclosure, and substantive analytical procedure.

the auditor substantive audit procedure shall include agreeing or reconciling the financial statement with the underlying accounting records & examination material journal entries and other adjustments made during the course of preparing the financial statements.

The auditor should consider the availability of data disaggregation & account type for substantive audit procedures.