<![CDATA[This study aims to analyze the contribution of substantive testing of account balances in detecting material misstatements in financial statements, using a case study of PT Garuda Indonesia (Persero) Tbk. The 2018 financial statement manipulation case drew significant attention due to its impact on investor confidence and capital market stability. Using a qualitative descriptive method through case study analysis, the research collected secondary data from audited financial statements and independent audit reports for the 2018–2019 period. The findings reveal that weaknesses in the execution of substantive testing of balances, particularly in revenue and accounts receivable, led to the failure to detect premature revenue recognition from long-term contracts, resulting in material misstatements. Comprehensive substantive testing through third-party confirmations, document verification, cut-off testing, application of professional skepticism, and auditor diligence is essential to uncover irregularities. The study concludes that substantive testing of balances is a fundamental instrument in detecting material misstatements, with significant implications for financial reporting transparency and public trust.]]>
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