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well In kaplan book i have read that when internal control are effective we do TOC. And With the subheading in Substantive Procedure its also writen that we the internal control are effective we use AP instead of TOD … so why to go to SP then AP instead go directly to TOC????
I can’t answer for Kaplan’s book, but:
If internal control is good you rely primarily on ToC. However, always some substantive tests are done, such as tracing 20 invoices to the De of the receivables ledger. You do this because all internal control systems have limitations such as human error and some direct tests of transactions are needed. Analytical procedures are also part of substantive tests.
HTH
If IC is poor, you only evidence might be substantive tests and you will have to do a much greater volume of testing.
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