An auditor may perform the following three types of substantive procedures:

(a) tests of details of transactions; (b) tests of details of balances; and (c) analytical procedures. Below are specific audit procedures that fall within one of these categories:

1. Reconcile supplier statements at the year-end with balances in the purchase ledger.

2. Validate a sample of sales invoices to goods des patch records held in the inventory system.

3. Review post year-end receipts from customers to establish the extent of unpaid debts.

4. Calculate gross profit ratios for each branch of a chain of supermarkets and compare month-by month and prior year.

5. Obtain schedule of asset disposals in the period and validate against supporting sale documents.

6. Attend the factory on the final day of the year to review work in progress.

7. Validate payment to equipment hire company to a copy of the lease.

8. Calculate expected payroll costs from last year's amount adjusted for staff changes and pay rise in the year.

Required For each procedure, explain which of the three types of substantive procedures it belongs to.