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Hi Tutor,
What is the difference between Audit Controls and Substantive Controls?
Kind regards,
ShohaniI have not come across either term before.
The terms usuallly used are internal controls and substantive tests.
Internal controls are the system of controls (such as physical controls, authorisation and reconciliations) that the company uses to prevent and detect fraud and error. Auditors will test the operation of these controls.
If there are inadequate internal controls, auditors have to use substantive tests (such as personally inspecting lots of postings to ensure they are correct).
Sorry tutor, I meant Audit Procedure not Audit control. Is Audit Procedure the same as Substantive tests?
I’m referring to question 5 i, EastVale Co Pilot paper -pre 2007 .
Audit procedures are anything the auditor does in the audit. Generally they divide into:
1 Tests of control
2 Substantive tests.
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