Dual-Purpose Tests

Dual-purpose tests are tests of transactions that both evaluate the effectiveness of controls and detect monetary errors.

In essence, a dual-purpose test combines a test of controls with a substantive test to do both at once.

So, we can say that a dual-purpose test is an audit procedure that consists of both “tests of control” and “substantive tests” that involve a re-performance of client procedures to determine the occurrence rate of errors in a financial statement.

The former looks for evidence that the client verification procedure was effective and the latter looks for evidence that the transactions were accurate.