An example of substantive testing and also a test of controls is using audit software to identify purchases where the vendor's invoice, the receiving report, and the purchase order did not match prior to payment of the vendor's invoice.

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This scenario involves substantive testing because it involves identifying errors or discrepancies in specific transactions. However, it also involves a test of controls since it is checking whether the company has appropriate controls in place to ensure that invoices are properly matched with receiving reports and purchase orders before payment is made.

An Example of Substantive Testing and Also a Test of Controls