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Can some test of controls be substantive procedures or vice versa or is it a hard core rule that both should be different?
I actually made a very recent post with an example here https://opentuition.com/topic/substantive-procedures-22/ – the auditor might take one sample of sales invoice and use it for a test of control (does it have a cross-reference to show it has been matched to goods received note? and/or a signature/initial as evidence that the casts have been checked?) and use the same sample for a substantive procedures (agreeing the invoice details to a GRN and/or recasting the invoice).
The distinction is important – a TOC is not interested in monetary amount – the result is binary – Yes or No – has the control operated? No is a deviation for which toleration will be very low (e.g. 1 or 2%),
For a substantive procedure it should always be possible to quantify any errors (for inclusion on a schedule of potential adjustments).
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