Week 8 - Year end Testing/Substantive Testing Flashcards
(4 cards)
1
Q
What is the difference between year end and substantive testing?
A
No difference - same thing
2
Q
What is substantive testing?
A
Testing of actual transactions and balances
3
Q
What is compliance testing?
A
Testing of controls
4
Q
What does substantive testing involve?
A
Looking at profit and loss / balance sheet and working out how the numbers add up
- go back to source documents
- look for evidence
