Analytical procedures evaluate financial information through 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.
Recognize financial statement areas where analytical procedures can be used effectively
Detemine 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
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
Accountants and CPAs that perform audit and review engagements