Lesson: Substantive Testing Procedures Summary

Instructor: Nick Palazzolo

This lesson provides an overview of the various substantive testing procedures, highlighting their importance in verifying information and reducing detection risk during an audit. The lesson emphasizes the need to understand how to substantiate different assertions and corroborate evidence. Additionally, it addresses the potential pitfalls and common errors that auditors may encounter while performing their tests, such as using incorrect source documents or verifying information with itself. Underlining the significance of practice and utilization of available resources, this lesson encourages persistence and thoroughness to successfully complete the CPA exam.

Updated: June 22, 2023 Create an account

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Transcript

Instructor: Nick Palazzolo

Nick Palazzolo is head instructor of ExamPrep.ai CPA Review. Nick's teaching style is engaging & upbeat, combining practical Big 4 tax & assurance expertise with years of 1-on-1 coaching. His lessons are concise and emphasize what you need to know to pass. Whether you're a recent grad or working full-time, we’re confident you can conquer your CPA exams with Nick’s review.

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Another wonderful lesson under our belts. We got this down. Make sure you're practicing multiple choice questions, getting your SIMs done, because this is quite prevalent within both of those mediums of question. Now, in summary, we want to be able to identify various substantive procedures and what they accomplish and what they verify. That's going to be absolutely critical. You want to pretend like you're actually doing these things. That's the whole point of this exam. We also want to understand how to substantiate various assertions and how to corroborate evidence. We want to make sure we're very in line with that. That's an incredibly important point of the exam, something that you see again in our cycles lesson. We also want to ensure that you can explain what procedures to perform and how to perform them in order to obtain the evidence you need and in order to reduce detection risk, tying back into our audit risk lesson. Lastly, be familiar with the pitfalls of testing and the errors an auditor can make when you're doing these tests, making sure that you didn't accidentally do something to mess it up and invalidate your entire test using an incorrect source document or talking to the wrong person or really just verifying information with itself. That's a very common pitfall you see in real life. So that is something to watch out for. It has been my pleasure to walk you through another lesson here. Again, keep powering through the questions, look at your flashcards, watch the videos, use the memorization guides. Everything here is at your disposal. Use it to pass this exam. I want you to be done with it. Never have to think about it ever again. All right, thank you all and have a great rest

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