In regard to substantive tests which of the following is false?
| Substantive tests are designed to test controls. | ||
| Substantive tests are performed to detect material misstatements. | ||
| Substantive tests are tests of account balances. | ||
| Substantive tests may be an analytical procedure. |
Substantive tests are designed to ensure that financial statements are complete, valid and complete. These controls are not designed for testing controls. These tests are used only for verifying financial statements.
Hence, correct option is “Substantive tests are designed to test controls.”
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