Substantive Tests – Analytical Procedures, Balances and Transactions. Substantive tests include (1) tests of the details of transactions, (2) tests of the details of balances, and (3) analytical procedures. Listed below are several specific audit procedures.

Identify the type of substantive test – 1, 2, or 3.

A. Compare recorded travel expense with the budget.

B. Vouch entries in the check register to paid checks.

C. Recompute accrued interest payable.

D. Calculate inventory turnover ratios by product and compare with prior periods.

E. Reconcile the year-end bank account.

F. Discuss uncollectible accounts with the credit manager.

G. Count office supplies on hand at year-end.

H. Vouch entries in the sales journal to sales invoices.

I. Comparison of recorded amount of major disbursements with appropriate invoices J. Comparison of recorded amount of major disbursements with budgeted amounts K. Comparison of returned confirmation forms with individual accounts

[Adapted from Carmichael et al., 1996, Auditing Concepts and Methods, McGraw Hill, New York.]