In short
Tests of details are substantive procedures that examine individual transactions, balances or disclosures, such as vouching, confirming, recalculating and inspecting documents.
Key takeaways
- They are generally more persuasive than substantive analytical procedures for high-risk assertions.
- For a significant risk, substantive procedures must include tests of details unless controls are also tested.
- Samples can be selected statistically or not.
Where it's tested
AUD: Responding to Assessed Risks — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
An auditor assesses control risk as very low for the revenue cycle after successfully testing controls. Which statement is correct regarding substantive procedures for revenue?