Substantive test: Substantive procedure detects a material misstatement in a transaction account balance and discloser component of the financial statement. It is an audit process that examines the financial statements and supporting records to see if they include errors. These tests are required as confirmation to maintain the declaration that the financial records of an entity are complete, applicable, and correct
Categories of substantive procedure: There are two categories of the substantive procedure. They are given below-
Text on details of the class of transaction account balance, and discloser: a Substantive test of a transaction for error or fraud in the individual transaction.
Substantive analytical procedure: Substantive analytical procedure facilitate an effective audit by helping the auditor understand the clients business, directing additional high risk, identify audit issue, that might not be otherwise apparent, providing audit evidence, and assisting in the evaluation of audit risk.