Substantive Procedures

Substantive procedures are detailed tests and checks auditors perform to gather evidence about whether a company’s financial statements are accurate and free from errors or fraud. These procedures include examining transactions, balances, and supporting documents to verify that the reported figures truly reflect the company’s financial position. They are essential in ensuring the reliability of financial reports, helping auditors form an opinion on whether the statements fairly present the company’s financial health. Essentially, substantive procedures are the investigative steps auditors take to confirm the integrity of financial information.