Substantive procedure
A substantive procedure is designed to detect material misstatements at the assertion level. It can be a test of details of transactions, balances and disclosures or a substantive analytical procedure. The choice depends on the assessed risk and the evidence needed.
Worked example
The auditor examines supporting invoices and subsequent payments for a sample of year-end payables.
Common mistake
Do not confuse testing whether a control operated with directly testing whether an amount or disclosure is misstated.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Direct | September 2026–June 2027 |
| ACCA | AAA (INT) | Direct | September 2026–June 2027 |