Substantive tests are procedures designed to test for dollar misstatements that directly affect the correctness of financial statement balances.

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Substantive tests are specifically designed to detect material misstatements that directly impact the financial statement balances. These tests may include examining supporting documentation, verifying the existence of assets and liabilities, testing transactions, and calculating financial ratios. They are performed to provide reasonable assurance that the financial statements are free from material misstatement.

Substantive Tests Are Procedures Designed to Test for Dollar Misstatements