Describe the process an outside auditor uses to analyze an o

Describe the process an outside auditor uses to analyze an organization’s transactions to ensure accuracy.

Solution

Substantive procedures are procedures to obtain evidence which an auditor collects to support the assertion that no material misstatement exists with regards to accuracy, completeness, validity of financial statements and records. These procedures are performed to detect any material misstatement which may exist. Accuracy is therefore checked by an auditor through the substantive procedures.

The following activities are generally performed for the substantive procedures -

Some examples of substantive procedures are -