Hello everyone,

Could anyone please differentiate between these terms:

Tests of details
Test of control
Substantive testing

I know what is substantive testing and test of control but how would you differentiate between these and with test of details.

Regards,
Ayesha Jabeen.

-Where internal controls are strong, auditors typically rely more on Substantive Analytical Procedures (the comparison of sets of financial information, and financial with non-financial information, to see if the numbers 'make sense' and that unexpected movements can be explained)

-Where internal controls are weak, auditors typically rely more on Substantive Tests of Detail (selecting a sample of items from the major account balances, and finding hard evidence (e.g. invoices, bank statements) for those items)

Hope it would help

Salam Ayesha ,

Test of controls are tests peformed which help to see the effectiveness of internal control systeme i.e. how are they implemented and if the strategies implemented are running effectively.

Substantive testing has a component known as test of details . It really means checking details , the underlying accounts in financial statements and everything which would be necessary to get enough documented audit evidence on which to form an appropriate audit opinion.

How would you differentiate between test of detail and test of control ?

Test of control as I said above relate only to the testing of internal controls while test of detail test every and everything from procurement policy to the marketing dept and accounts underlying the financial statements.

I hope this helps .


Cheeers...

Acid