Developing Audit Programming for Substantive Test
Substantive procedure detects a material misstatement in a transaction account balance and discloser component of the financial statement. It is an audit process that examines the financial statements and supporting records to see if they include errors. These tests are required as confirmation to maintain the declaration that the financial records of an entity are complete, applicable, and correct
Developing audit programming for substantive test: the following audit programs for the substantive test are given below –
Comparativeness: The substantive should account balance etc should prepare properly to develop an internal control system for reduction of risk.
Completeness: All disclose event transaction; other related accounts should be in a properly complete.
Experienced person: For developing a substitutive test, all experienced and expert person should be employed by experience.
Understand the business nature: For developing an audit program for the substantive test, the auditor should understand properly the whole nature of the business.
Accuracies and valuation: For a development of audit program the auditor should financial and other information relating to inventory arc disclose fairly to an appropriate amount. To know about cost structure for developing audit programs for a substantive test. The auditor should very known about material labor and overhead.