What are substantive tests and tests of control?

Question

Accepted Answer

Substantive tests are procedures performed to detect material misstatements in financial statements, while tests of controls evaluate the effectiveness of internal controls.

Substantive tests are used to gather evidence about the completeness, accuracy, and validity of the financial information.
Examples of substantive tests include analytical procedures, substantive analytical procedures, and tests of details.
Tests of controls assess the design and operating effectiveness of internal controls to prevent or detect material misstatements.
Examples of tests of controls include inquiries, observations, and inspection of documents.
Both types of tests are important in the audit process to provide reasonable assurance about the accuracy of financial statements.

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What are substantive tests and tests of control?

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