Audit and Assurance Practice Exam 2025 – The Complete All-in-One Guide for Exam Success!

Substantive testing in an audit primarily aims to verify the accuracy of financial statements. This type of testing involves evaluating and validating the data presented in the financial statements to ensure that they are free from material misstatement, whether due to error or fraud.

The process includes various procedures such as examining transactions, testing account balances, and obtaining supporting documentation. By focusing on these elements, auditors can ascertain that the financial results presented reflect the true financial position and performance of the organization in accordance with relevant accounting standards.

Gathering evidence on internal controls, while important, is typically done through tests of controls rather than substantive testing. Determining auditor independence is a matter of adherence to ethical standards and regulations, not the focus of substantive testing. Calculating auditor fees pertains to the business aspect of auditing services and does not relate to the substantive testing process in terms of evaluating financial statement accuracy.