MODULE 19

Question 1

What’s Substantive Testing?

Answer 1

Performing audit procedures that are designed to detect material misstatement at the assertion level

Question 2

What of Tests of details?

Answer 2

Selecting specific items within the population for testing, e.g giving an opinion on the truth and fairness of the financial statements may cause auditors to test the Sub- Ledgers

Question 3

What are substantive analytical procedures?

Answer 3

Testing the whole population at once

Question 4

What things must be included when writing a substantive procedure?

Answer 4

A testing technique
What population the sample is being selected from
What evidence you wasn’t the sample agreed to
What is actually being looked for

Question 5

What are the three Substantive procedures?

Answer 5

Performing a debtors circularisation (writing to a sample of customers that they provide confirmation of the balances they owe at the end of the yr)

Performing a subsequent cash testing (post yr end cash-testing) - agreeing yr end debtors to cash received after the yr end date

Testing the allowance for doubtful debt

Question 6

What are the three Substantive procedures?

Answer 6

Performing a debtors circularisation (writing to a sample of customers that they provide confirmation of the balances they owe at the end of the yr)

Performing a subsequent cash testing (post yr end cash-testing) - agreeing yr end debtors to cash received after the yr end date

Testing the allowance for doubtful debt