Which of the following is a substantive audit test?
A. Verifying that a management check has been performed regularly B. Observing that user IDS and passwords are required to sign on the computer C. Reviewing reports listing short shipments of goods received D. Reviewing an aged trial balance of accounts receivable
D. Reviewing an aged trial balance of accounts receivable
In compliance testing we gather evidence with the objective of testing an organizations compliance with control procedures.
In substantive testing, we gather evidence to evaluate the integrity of data, a transaction or other information.
Compliance testing checks for the presence of controls whereas substantive testing checks the integrity of contents.