Description

The Substantive Testing Matrix is an Excel-based template for organizing test case information. It includes fields for transaction ID, date, vendor, invoice and recorded amounts, differences, supporting document verification, exceptions, comments, and conclusions, providing a structured format for documenting audit observations.

……………………………….

Food for Thought: Substantive testing is a core audit technique that verifies the accuracy and integrity of financial and operational records by directly examining transactions, balances, or disclosures. Unlike compliance testing, which checks whether procedures are followed, substantive testing confirms whether what’s reported is actually correct. This technique is essential during the evaluation and conclusion phase of the audit, particularly when material misstatements are a risk. Substantive testing involves recalculations, confirmations, document inspections, and analytical reviews. Internal auditors typically sample data and test for accuracy, completeness, and validity.