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Please state the difference between substantive test and compliance test. Kindly confirm my understanding that substantive tests are done at interim audit and compliance test at final audit. If compliance tests are done at final audit, what type of tests are usually made.
Substantive test are test to detect material misstatements where as compliance test are simply test of controls which aim to ensure wheather internal controls are operating effectively.one examples could relate to the system being asked in question like in relation to purchase system a substantive test could be:review the purchase ledger for any unmatched invoices.
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Do we not begin with compliance tests[CT] ( test of ctrl) before we do substantive tests[ST] (test of figures) since CT enables us 2 get an impression of reliability o e systms’ ability to produce accurate info??
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