Audit Procedures for Account Balances Substantive procedures for disclosures and account balances are necessary to acquire enough evidence as there are many restrictions on internal controls. The auditor's judgments based on opinions when preparing risk assessment concerning the business and its scope can be a limitation to obtaining enough audit evidence (Clatworthy & Peel, 2013). Therefore, the auditor must perform essential procedures applicable in different transaction classes and account balances without directing any attention to the risk assessment of misstatement of material (Gantz, 2014).
Substantive Audit Procedures Wages and Salaries Account Balances Interim Audit This type of audit test relies on the particular structure of the system of wages and the evaluation controls of the auditor. Type of test procedures for each control objective are the following: * To make sure that the workers are paid only for the work they have done. The substantive procedure involves the selection of a random sample of workers from the payroll and the agreed hours of payment according to the time recorder that tracks the number of hours worked by an employ in an entity. * To make sure that only valid laborers receive wages. This is tested by attending the payout of salaries and a sample selection of workers' payroll and take the responsibility of the contracts of the individuals employment in the department of HR * To ensure authorization of all wages. Overtime forms review and authorized signatures are regarded as a test of control. Comparison of overtime costs every month with the year before, and investigation of significant differences is a substantive procedure * for ensuring that wages and salaries are paid at the correct payment rates (Veldhuizen, 2013). This involves a review of amendments of a log to the master file for independent study