Substantive procedures collect evidence regarding the accuracy, completeness, and validity of data produced by the accounting system.

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Substantive procedures are designed to gather evidence about the accuracy, completeness, and validity of data produced by the accounting system. These procedures involve testing transactions, account balances, and disclosures to ensure that they are free from material misstatement. Examples of substantive procedures include analyzing account balances, conducting inventory observations, reviewing contracts and agreements, and analyzing accounting estimates.

Substantive Procedures Collect Evidence Regarding the Accuracy, Completeness, and Validity