Lesson: Substantive Testing Procedures Overview

This lesson provides an overview of substantive testing procedures, also known as tests of details, which are essential in the auditing process. Nick Palazzolo, CPA, explains that these procedures involve the confirmation of account balances and transactions, employing various methods such as confirming, inquiring, observing, and recalculating. The lesson highlights the importance of substantive testing in relation to audit risk and its application in various cycles, including the cash and revenue cycles. Dive into the specifics of substantive testing procedures to gain a better understanding of this crucial aspect of auditing.