Analytical procedures can be a powerful tool for the examination of a client's financial statements. They can highlight possible material misstatements, and even replace substantive tests that would require much more time to complete. In the Guide to Analytical Procedures course, we discuss how to design analytical procedures and when to use them, while also providing examples of how trend analysis, ratio analysis, reasonableness testing, and regression analysis can be used.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Recognize how analytical procedures can be used in each stage of an audit.
Identify situations that can impact the predictability of relationships between data.
Specify the issues that can impact the precision of an analytical procedure.
Recognize the levels of precision associated with the different types of analytical procedures.
Identify the causes of an unexpected variance from the expected value.
Major Topics
Guide to Analytical Procedures
Levels of Assurance Provided
Examples of Analytical Procedures
Analytic Procedure Case Study
Proposal Adjustments Based on Analytical Procedures
