The main difference between substantive testing and controls testing is:
A)Substantive testing verifies whether information is correct, whereas control tests determine whether the information is managed under a system that promotes correctness.
B)Substantive testing determines whether the information is managed under a system that promotes correctness, whereas control testing verifies whether information is correct.
C)Substantive testing goes further in depth into the internal controls of a company, whereas controls testing just identifies which controls need further review.
D)Substantive testing identifies which controls need further review, whereas controls testing goes further in depth into the internal controls of a company.

Question

Quizplus · Accepted Answer

Substantive testing is focused on verifying whether information is correct, while controls testing is focused on determining whether the information is managed under a system that promotes correctness. Substantive testing involves the testing of account balances, transactions, and disclosures, whereas controls testing involves testing the design and operating effectiveness of controls that are intended to prevent or detect errors or fraud. In other words, substantive testing is looking at the actual output, whereas controls testing is looking at the system in place to ensure the output is accurate.

The Main Difference Between Substantive Testing and Controls Testing Is