Certified Information Systems Auditor Practice Exam 2025 – All-in-One Guide to Master Your CISA Certification!

Comparing equipment in production with inventory records during an audit primarily serves as a form of substantive testing. This process is used to verify the existence and accuracy of the reported equipment in the inventory. Substantive testing focuses on the actual numbers and transactions to ensure that the financial statements are free of material misstatement. By physically verifying the equipment and matching it with inventory records, auditors can determine whether the quantities reported are correct and whether the details align with what the organization claims in its inventory records.

This method goes beyond just checking compliance with policies or controls; instead, it assesses the accuracy of the figures reported, making it a critical component of auditing financial statements. In addition to supporting the overall integrity of the financial reports, this testing can also bring to light discrepancies that may indicate larger issues within inventory management practices or asset tracking in production.