ABREMA: audit sampling and testing: example: performance of audit procedures: substantive testing

Audit testing procedures

Example: performance of audit procedures: substantive testing

Following selection of the items for testing, the auditor performs the relevant audit procedure(s) on those items.

Depending on the type of substantive procedure and the nature of the class of transactions or account balance, the auditor may, for example:

vouch details of the transaction selected with supporting documentation;
physically examine the asset representing the item selected.
confirm the accounts receivable balances selected directly with the customer.

In the example, the auditor vouches the unit costs of the 55 retail inventory items selected with costing records that have previously been vouched to suppliers' invoices.

The next step is to perform a qualitative analysis of any exceptions detected.

Audit testing procedures, index page