Compliance procedures are those tests designed to obtain reasonable assurance that those internal controls on which audit reliance is to be placed are in effect. In obtaining audit evidence from compliance procedures, the auditor is concerned with assertions that the control exists, the control is operating effectively and the control has so operated throughout the period of intended reliance.
Whereas substantive procedures are tests designed to obtain evidences as to the completeness, accuracy and validity of the data produced accounting system. They are of two types: tests of details of transactions and balances and analysis of significant ratios and trends. As mentioned in NSA-500 Audit Evidence, when obtaining audit evidence from substantive procedures, the auditor should consider the sufficiency and appropriateness of audit evidence from such procedures together with any evidence from tests of control to support financial statement assertions.