Analytical review procedures are performed in the preliminary and final stages of the audit. Auditors may also choose to perform analytical procedures as substantive tests. It is important to properly design and perform the procedures to ensure an effective and efficient audit engagement. This module will provide detailed guidance and methods for performing these techniques. (Please Note: This module is part of Surgent's Audit Skills Training: Level 2.)
Learning Objectives
- Performing effective preliminary analytical procedures in the risk assessment process
- Performing a final overall analysis to assess the conclusions reached during the audit and evaluate the overall financial statement presentation.
- Planning and performing effective and efficient substantive analytical procedures
- Concluding on analytical procedures
Major Topics
- Preliminary analytical procedures as risk assessment procedures
- Performing final analytical procedures to assess the conclusions reached during the audit and evaluate the overall financial statement presentation.
- When to use substantive analytical procedures for efficiency and effectiveness
- Establishing expectations for substantive analytic procedures
- Setting a threshold for differences
- Following up on differences from expectations
- Concluding on substantive analytical procedures
