For financial statement audit purposes,when auditing debt and stockholders' equity transactions,the auditor will most likely perform a substantive audit,and therefore will not perform tests of controls for the debt and equity accounts.

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Substantive audit procedures are used to obtain assurance about the completeness, accuracy, and validity of account balances, transactions, and disclosures. In contrast, tests of controls are used to evaluate the effectiveness of internal control over financial reporting. Debt and equity transactions are typically recorded in the general ledger and are subject to substantive audit procedures, such as analytical procedures and tests of details, to provide sufficient evidence about the financial statement assertions related to these accounts. Therefore, the auditor would not need to perform tests of controls for these accounts.

For Financial Statement Audit Purposes,when Auditing Debt and Stockholders' Equity