Substantive procedures include methods such as inspecting documents, external confirmation, recalculation and observing physical counts. The extent of substantive work is increased or reduced depending on the results of tests of controls.
For each material account, some substantive procedures must be performed regardless of the risk assessment.
Source: BDS 330
Related terms
Tests of controlsProcedures performed to evaluate whether an entity's internal controls operate effectively in preventing, or detecting and correcting, material misstatements.Analytical proceduresThe evaluation of financial information through analysis of plausible relationships among financial and non-financial data.External confirmationThe auditor obtaining written confirmation of a balance or information directly from a third party (bank, customer, supplier, lawyer).Adverse opinionThe opinion in which the auditor states that the financial statements are not presented fairly, where misstatements are both material and pervasive.Agreed-upon proceduresAn engagement in which the practitioner performs procedures agreed with the entity and, where relevant, a third party, and reports only the findings without providing assurance.Assurance engagementAn engagement providing assurance, against specified criteria, on a subject matter other than an audit or review of historical financial information.
Last updated: October 22, 2026 · This definition is for general information only.