Business, 16.11.2020 17:50 BigDough9090
Analytical procedures consist of evaluations of financial information made by a study of plausible relationships among both financial and nonfinancial data. They range from simple comparisons to the use of complex models involving many relationships and elements of data. They involve comparisons of recorded amounts, or ratios developed from recorded amounts, to expectations developed by auditorsa. Describe the broad purposes of analytical procedures.
b. When are analytical procedures required during an audit? Explain why auditors use analytical procedures extensively in all parts of the audit.
c. Describe the factors that influence the extent to which an auditor will use the results of analytical procedures to reduce detailed tests in meeting audit objectives.
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Analytical procedures consist of evaluations of financial information made by a study of plausible r...
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