Video: Introduction to Substantive Testing Procedures

In this lesson, Nick Palazzolo discusses substantive testing procedures, also known as tests of details, and their importance for detecting material misstatements or fraud at the assertion level. He highlights the different aspects of substantive testing, such as overall responses, audit procedures responsive to risks, and evaluating the sufficiency and appropriateness of audit evidence. Furthermore, he emphasizes the importance of professional judgment in determining the nature, timing, and extent of further audit procedures. To conclude, this lesson provides an overview of key concepts related to substantive testing procedures and their role in audit risk management.