Question

A procedure designed to test for monetary misstatements directly affecting the correctness of financial statement balances is a _______.

Answer 1

The answer is: Substantive test

Explanation:

Substantive test, also known as substantive procedure, is a procedure by which an auditor examines the financial records or statements to check or detect any misstatement or error or fraud. The substantive tests are used as evidence to validate that the given financial records or statements are accurate and valid.