Substantive procedures are audit procedures designed to detect material misstatements at the assertion level. Substantive procedures are technique used by auditor to test if the assertion of management in the financial statement are true.
In other words substantive procedures are techniques used by audit to collect sufficient and appropriate evidence which will enable him to conclude if financial statements are free of material misstatement or not.
Substantive procedures consist of;
Test of details of account balances classes of transactions and disclosures. test of details include observation, recalculation, re performance, external confirmation, physical inspection and inquiry.
Substantive analytical procedures which involve comparison of information in the financial statements and auditors acceptable criteria.