list 3 the alternative substantive test available to the auditors

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Substantive Procedures (or Substantive tests) are the procedures performed by the auditors to collect evidence regarding the authenticity, completeness, right, valuation, etc of the Financial statement items.

Three alternative types of Substantive tests are as follows:

1. Analytical Procedures

2. Test of Details of Transactions

3. Test of Details of Balances

1. Analytical Procedures

This is the widely used procedure performed by every auditor generally at many phases. It is related to comparing the financial data as well as non-financial data.

Like Comparing the' Asset Turnover Ratio' of the company with the Industry and so on.

2. Test of Details of Transactions

In test of details of transactions, vouching of transactions is done to ensure that the transactions are actually incurred with the approval of the proper authority, no transaction is omitted either by error or fraud and checking other similar things.

3. Test of Details of Balances

In test of details of balances, verification of the existence, right and obligation, valuation, completeness and disclosure of the items of the financial statement is done by the auditor.

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ekkarill92 answered 2 years ago

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