What type of audit procedure is performed by auditors to test transaction details and account balances for monetary misstatements?
AControl Tests
BSubstantive Procedures
CRisk Assessment
DAnalytical Review
Explanation
• Substantive Procedures are audit tests executed to detect material misstatements at the assertion level in transaction balances or account disclosures.
• Substantive procedures include test of details (reconciliations, physical inspection) and substantive analytical procedures.
• Tests of controls evaluate the operational effectiveness of internal accounting controls.
Exam Relevance
- Topic: Auditing
- Subtopic: Audit Procedures

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