Test of Control and Substantive Procedures Flashcards
(5 cards)
1
Q
what is meant by test of control?
A
it evaluates how well the internal controls are working as intended
2
Q
what are some examples of test of control?
A
- inspection
- enquiry
- observation
- re-performance
3
Q
what is meant by substantive procedures?
A
it detects material misstatements from financial statements
4
Q
what are the objectives of substantive procedures?
A
- existence or occurrence
- rights and obligations
- valuation and accuracy
- completeness
- presentation
5
Q
what are some examples of substantive procedures?
A
- inspection
- confirmation
- re-calculation
- analytical
