What is the main focus of Substantive Testing during an audit?

The main focus of substantive testing during an audit is to verify the accuracy of accounting records. Substantive testing involves examining financial transactions, account balances, and other data to ensure that they are free from material misstatement and accurately reflect the entity's financial position. This type of testing aims to gather evidence that supports the financial statements’ assertions made by management, such as existence, completeness, valuation, and rights and obligations.

By focusing on the accuracy of accounting records, auditors can determine whether the financial information presented in the financial statements is reliable and credible. This helps to bolster users' confidence in the financial statements, which is essential for making informed decisions. Substantive tests may include various procedures like reviewing invoices, confirmations with third parties, or analytical procedures that help identify areas that could potentially misstate the financial statements.

While reviewing policy compliance, evaluating auditor performance, and assessing financial risk are important aspects of the audit process, they do not directly pertain to the core goal of substantive testing, which is to substantiate the correctness of financial information.