Substantive testing
- Term
- Substantive testing
- Exam
- CISA
- Definition
Testing the integrity of actual transactions or balances to detect material misstatement.
- Explained
Substantive tests examine the actual data or transactions for errors, such as recalculating interest or confirming balances. When controls are weak or untested, auditors rely more on substantive testing to reach conclusions.
- In practice
Recalculating interest on loan accounts to confirm the amounts are correct.
- Often confused with
- Compliance testing
- Exam angle
Asks: is the data correct? Increase it when controls are weak.
- Related