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In the auditing phase, the auditor first carries "test of controls" to verify if the organisation's financial statements are worth relying upon. If the auditor is not satisfied with this, he then carries "substantive test" which is a comprehensive analysis.
For example, to test the accuracy of figure of "Sales" in income statement, the auditor will look at your Sales system, i.e. the internal controls. If they work fine, the auditor will be satisfied that this Sales figure cannot be wrong. But if the Sales system is not properly structured, for example, credit checks not performed, sales made without customer on the database, sales still made to bad debts, etc., these all are weaknesses in internal controls, so the auditor will now carry a substantive test in which he assess whether the given figure is accurate or not. For example, by using ratios, analytical procedures, inquiries, confirmation letters from receivables etc.
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a quality control document that records and controls all inspection and testing requirements relevant to the sub-contract or process.
What is the difference between financial intermediaries and non financial intermediaries?
test
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common aptiitude test
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In my view reliable test is always valid.
300000 current assets 100000 current liabilities and inventory of 150000 what is the acid test ratio?
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What are the differences between substantive procedures and substantive analytical procedures?
They are not both "analytical", but "substantive" and "analytical". Substantive procedures are reviews of documents for a "substantial portion" of account activity, while analytical procedures includ controls test and test relying on mathematical relationships reflectinb accounting mecvhanics, contractual provisions [debt times interest rate], or business capabilities [production per machine hour or day].
When to use substantive test and test of controls during audit of entity?
When there is material misstatement
What is compliance and substantive test in auditing?
In compliance testing you check the design, implementation and operations of controls and substantive testing you actually verify the accuracy of the transactions e.g. test samples
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In compliance testing you check the design, implementation and operations of controls and substantive testing you actually verify the accuracy of the transactions e.g. test samples
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What is substantive test of transaction?
testing for completeness and existance.
What are the substantive procedures to test account payable?
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a multiple choice gives you the chance to guess
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Explain the differences between analog and digital test meters in light vehicle?
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In ANOVA, what does F=1 mean? What are the differences between a two sample t-test and ANOVA hypothesis testing? When would you use ANOVA at your place of employment, in your education, or in politics?
What is test bias?
The differences in test scores, or predictions from those scores, between two or more subgroups of the population that are matched on the underlying construct being measured.
