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There are three stages of the audit in which analytical procedures are performed. Identify each of ...
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There are three stages of the audit in which analytical procedures are performed. Identify each of ...
There are three stages of the audit in which analytical procedures are performed. Identify each of these three stages and, for each stage, discuss the purpose of performing analytical procedures in that stage. Also indicate in which stage(s) analytical procedures are required by current professional auditing standards.
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Auditing and Assurance Services
Edition:
17
th
Authors:
Arens, Elder, Beasley, Hogan
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Analytical procedures are performed in the audit planning stage to help the auditor decide the other evidence needed to satisfy sufficient competent evidence requirements. Analytical procedures can also be performed as substantive tests in the testing phase of the audit. Analytical procedures are performed in the audit completion phase as a final test of reasonableness. Auditing standards require that analytical procedures be performed in the planning and completion phases of every audit.
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