Analytical Procedures: Methods and Evaluation 2024

Overview

Analytical procedures evaluate financial information through the 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.

Highlights

• 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

Prerequisites

None

Designed For

Accountants and CPAs that perform audit and review engagements.

Objectives

• Recognize financial statement areas where analytical procedures can be used effectively • Determine 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