1 Explain the purpose of substantive testing, and give examples of the main types of substantive tests. LO1 2 Why would an auditor use observation to gather evidence? What are the strengths and weaknesses of this type of test? LO1 3 What are analytical procedures? Describe how they can be used as substantive tests in an audit. LO1 4 What does 'nature' mean in the context of the nature, timing, and extent of substantive testing? LO2 5 Explain how decisions about when and how much substantive testing is performed relate to the overall risk assessment for the item being tested. LO2 6 Explain 'roll-forward' procedures. When are they appropriate? LO2 7 Which accounts and/or clients are more suitable for interim substantive testing? LO2 8 Why is it important to consider the quality of the data used in analytical procedures? How important to this question are client controls over financial data? LO3 9 Vouching transactions and balances back to supporting documentation would ordinarily provide evidence about which assertions? Which assertions would vouching be least likely to provide evidence about? LO3 10 Explain the two main types of automated tools and techniques. What are the advantages of using software to interrogate and examine client data files? Does using automated tools and techniques remove the need to test client control systems? LO3 11 What conditions must be satisfied before we can regard evidence from analytical procedures as persuasive rather than corroborative or minimal? Why are these conditions important? LO4 12 Provide an example of (1) an error and (2) a judgemental misstatement that could affect the balance of property, plant, and equipment.