Substantive procedures.

Where have you read the expression “substantive test of details”?

I hope that it’s not one of mine, neither in the notes nor in the lectures

Thank Heavens for that!

Now, let me see if I can’t make a stab at understanding it …… substantive testing is where we are seeking to establish any one of the assertions for the statement of financial position or the statement of profit or loss

We will be looking at material matters from those draft statements and concentrating on “proving” the likely reliability of the client’s figures

This is distinct from the tests of control that we would likely have carried out on the interim audit to determine whether the internal control system is likely strong enough for us to be able to rely upon it and thus reduce the extent of our substantive procedures whilst still getting to a “happy” position re the values in the draft statements

Now, “substantive test of details” looks to me like a mis-type of “detailed substantive tests”. IF (capital “IF”) that’s a correct assessment of mine, then “substantive test of details” will be looking for the audit steps to be carried out to substantiate the figures (looking at contracts to confirm values, scrutinising board minutes to confirm authority, examining the cash records to confirm payments, seeking and reviewing third party confirmations to confirm existence and valuation of balances ….. and many others

IF (again, a big IF) my assessment is incorrect, I can’t imagine what Kaplan are getting at without seeing the expression in its full context and even then I could be struggling!

Does that help?

You’re welcome