Define tests of controls, substantive procedures and walk-through tests

Auditing and Assurance Revision Questions and Answers

Tests of control are tests to obtain audit evidence about the effective operation of the accounting and internal control systems, that is, that properly designed controls identified in the preliminary assessment of control risk exist in fact and have operated effectively throughout the relevant period.

Substantive procedures are tests to obtain audit evidence to detect material misstatements in the financial statements. They are generally of two types:

(a) analytical procedures
(b) other substantive procedures, such as tests of details of transactions and balances, review of minutes of directors meetings and enquiry.

Walk through tests involve tracing one or more transactions through the accounting system and observing the application of relevant aspects of the internal control system.



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