Analytical procedures evaluate financial information through the examination of plausible relationships among both financial and non-financial data. They also encompass such investigation, when necessary, of the identified fluctuations or relationships that are inconsistent with other relevant information or that differ from expected values by a significant amount.
Learning Objectives
• Recognize financial statement areas where analytical procedures can be used effectively.
• Determine the appropriate procedures to perform and which financial ratios and benchmarks to evaluate in consideration of the company's industry statistics and the economic environment.
• Identify the circumstances when additional investigation of the results of the procedures is required.
Major Topics
• Review of the appropriate audit and review standards
• Identifying appropriate analytical procedures in the circumstances
• Developing expectations
• Designing and performing analytical procedures
• Investigating results of the procedures performed
• Introduction to data analytics
