Vous êtes sur la page 1sur 24


Substantive Testing
à t is it?

Tests of trnstions ² gt er evidene in

reltion to vlidity, ompleteness nd ury of
Tre soure doument to ounting reords
(journls nd ledgers)
Looking to ensure trnstion tully took
ple; t t is ws reorded in t e orret ount
for t e orret mount
à t is it? ( rite)

Tests of blns ² rvi ury, vlidity nd

ompltnss of ount blns
² Dbtors / ditos
² Stok
Looking to nsu t t ssts nd libilitis
tully ist; t t t  ompny ons t os
ssts nd libilitis; t t t  blns 
odd t t  ot vlu.
=r e re (rite)

Analytial revie ² revie relati nships beteen

fig res an t highlight n s al tren s
Trial Balane re-a e an heke against = L
Opening an l sing balanes heke
Revie j rnal entries an le ger p stings
westi (ite)

Bala e Sheet items:

² west liabilities fo u destateme t
² west assets fo ovestateme t
² west oes· equity fo ovestatemet
P L items:
² west epeses fo udestatemet
² west eveue fo ovestatemet
westi & it jetives (  263)

 ray ² real latios, trai,

Eistee a
o rree ² is etio,
o servatio, eq iry, aalytial review, vo hi
trai a
ofirmatio of assets a
Com leteess ² R, om leteess of alaes
etwee erio
s, trai a
vo hi,  t-offs
ãaluation and measurement ² inspetion,
enquiry, realulation and estimates of
Presentation, dislosure and lassifiation ²
inspetion, onfirmation, enquiry
Rights and obligations ² hek ownership of
rights, onfirmation , representation letters from
it =r r (  264)

list f r e
res t e rrie
H w the r e
res will e rrie
re r
f the w rk
e (sh w i the w rki
ers tht s  rt the =r r )
ee  265 
266 f r  e le f 
s sttive testi r r f r the sh
s syste - Hve the liets fi res t lly
it jetives with 
eree f
Reltionship b/w ompliane
substantiative testing (pg 267)
The Auditor must onsider the assessed level of inherent and
ontrol risk in determining the nature, timing and etent of
substantive tests needed to redue audit risk to an aeptable
If inherent risk and ontrol risk is high substantive testing must
be inhaned so as to redue detetion risk and maintain the
overall audit risk at an aeptable level
AR =IR * CR * DR
If ontrol risk is high ompliane tests will ease and greater substantiative
testing will be performed to lower the detetion risk (and therfore audit risk)

Even if inherent and ontrol risk is low the auditor must still arry
out some stubstantive testing
 sttitive testi

 sttitive testi is iresed y:

² Lrer smples of trstio d les
² F rther lytil review
² Gii  re of evidee ²  dit tril, eq iry,
ofirmtio i reltio to eh  dit o jetive or
² Risi mterility ie loweri the dollr vl e of
items to e verified
Detetion of errors irregularities

Types of errors
² Errors of priniple ² misappliation of aouning standards ie reording
apital ependiture as a epense
‡ Adjusting Journal required to Dr Asset and Cr Epenses and adjustment for
depreiation so that assets are not understated and epenses are not
² Errors of timing ² ut off tests ie goods invoied prior to June 30th but not
‡ Adjusting Journal required to Dr Aounts reeivable and Cr Sales assets are
not understated and revenues are not understated
² Misalulations- arithmetial or data entry ie reording sales as $3200
instead of $3400
‡ Adjusting Journal required to Dr Aounts reeivable $200 and Cr Sales $200
so that assets are not understated and revenues are not understated
If the lient refuses to amend the draft figures to adjust for a
material error, the auditors may eventually qualify their report
(hapter 15)
Selet a number of entries in SJ and vouh to
Soure do (sales invoie)
Trae a number of sales invoies to the SJ and
ledger aounts
ãerify arithmeti auray of sales invoie and
Review SJ for large or unusual items
Perform year-end ut-of test and prepare
adjusting entries
= r ses

Selet  n mber of entries in t e =J nd vo  to

so re do ments
Tre  n mber of s pplier invoies to t e =J nd
ledger o nts
=erform rel ltions on s pplier invoies
Review t e =J for lrge or n s l items
=erform yer-end  t-of test nd prepre
dj sting entries
 ts eeiv le

ãerify s e T/B fig re d re ile t Ge

Ledger  d s sidiry ledgers.
C firm s e ² letters re set t vri s
de t rs ski them t  firm the le s t
30 J e.
² P sitive  firmti s re sed where the de t r is
sked t resp d if they  ree with the le s
well s if there is  differee.
 ts eeiv le

ã h  ts reeiv le etries i  ti

re rds t s re d  mets
eview   ed lysis f de t rs d hek f r
de t rs t 120 dys.
eview deq y f Pr visi  f r D tf l De ts
Perf rm Sles  t- ff tests
 ts =y le

ãerify  ry f  ts py le tril le fig re

d re ile t redit rs· les s sidiry d
geerl ledger
ã h re rded redit rs t s pp rti d  metti 
C firm redit rs ² C firmti  letters set t t
redit rs. Letters re set t vri s redit rs ski
them t stte the le s per their re rds s t 30
J e. = sitive  firmti s re sed.
 ts =y le

=erf rm p rhses  t- ff tests

=erf rm sh pymets  t- ff tests
Ivet ry

ãerify auray f shedules ad perpetual

re rds ad agreemet with ivet ry balaes
Observe liet ivet ry taki ² be preset at
the liet·s st ktake
ã uh re rded purhases t supp rti
d umetati 
Equiry f maagemet regardi wership
vs eeits 
=y ets

vofir bk 
lo bles wit t e bk
vout s o 

=rere i
et bk reoilitio
=erfor s ut-off tests
eview rey ets
§ - rret ssets

ãerify  ry f fied sset register d  ree fied

ssets register with pr perty, plt d eq ipmet
Rel lte depreiti  d  m lted depreiti 
Ispet pr perty, plt d eq ipmet dditi s
ã h pr perty, plt d eq ipmet dditi s t
ã h pr perty, plt d eq ipmet disp sls/trde-is
t register
Emie title r lese d  mets
=yr ll

Review pyr ll re rds nd relulte pyr ll

Relulte rued w es
Selet  smple f trnsti ns fr m the pyr ll
register nd v uh t the j urnl entries nd
generl ledger
ãerify pyr ll lulti ns
Review preprti n f pyr ll t nd deduti ns
Ivest ets

Sed out Cofir atio Letters to ofir

ãerify auray of balaes, shedules ad
Ivest et Register
Ispetio of dou etatio ² broker ivoies,
re ittae advie for divided io e reeived
ad/or iterest eared
ãouh etries i ivest et aouts
Realulate iterest eared
O -wer Oi ilities

Sed ut C fir ti  Oetters t  fir l -

ter de t
Review d u etti  ² de t uth risti  d
 trts d v uh t etries i  uti
re rds.
Alytil review
 re l

Ispet s re Register

ã  etries t s re pitl  ts, retie

pr fits 
Review C stit ti  f t e  mpy
C ek t e s re 
eq ity iss es ve 

t C rp rti s Lw 
t er relevt
legisltive r te il req iremets.
C ek t t
s re pr perly  t rise