Analytical procedures are part of an auditor’s risk-assessment process. They are also performed near the end of audits. ‘Substantive’ analytical procedures may be used in response to assessed risks. The Australian Securities & Investments Commission has identified shortcomings in using analytical procedures. Lessons are to be learnt. Different emphases apply when analytical procedures are used in a review engagement.
This session will address:
- The nature of analytical procedures and common ones
- How to use analytical procedures in risk assessments and at the conclusion of audits
- When ‘substantive’ analytical procedures apply
- Lessons to learn from ASIC’s and other reviews
- Good and poor analytical practices, and
- Analytical procedures for review engagements.