Auditors gather evidence about these assertions by undertaking activities referred to as substantive procedures.

The objective is to determine the nature, timing and extent of substantive procedures in order to reduce audit risk to an acceptable low level.

In addition to the above, based on an assessment of risk, Internal Audit identified and performed other substantive procedures.

Evaluate the results of tests, reassess the internal control conclusions and make any necessary revisions to substantive procedures.

There are two categories of substantive procedures - analytical procedures and tests of detail.

If compensating controls are not found, substantive procedures are required to address critical financial statement component assertions.

Some audits involve a 'hard close' or 'fast close' whereby certain substantive procedures can be performed before year-end.

Substantive procedures therefore had to be performed to gather sufficient evidence to support our conclusions with respect to the objectives set down by the Management Committee.

For this reason, in certain computer systems it may be more efficient for the auditor to place no reliance on the system and conduct extensive substantive procedures.

Substantive procedures (or substantive tests) are those activities performed by the auditor to detect material misstatement or fraud at the assertion level.

Findings based on the substantive procedures review This section describes the results of our review of substantive procedures performed by the internal auditors.

Our audit also included a review of the substantive procedures performed by CAC on the approval of contribution payments for 17 files selected from among the projects for which a payment had been made.

A number of regional systems for the registration or deposit of industrial designs have been established, aimed at facilitating the protection of designs on the basis of a simplified, centralized procedure, and in some cases also harmonized substantive procedures.

Control Area The auditor must judge which alternative is the more efficient: (a) conducting extended substantive procedures or (b) performing tests of controls to justify placing reliance on controls and reducing substantive procedures.