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4 Cards in this Set
- Front
- Back
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Analytical procedures as a substantive test involves
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Establishing a sufficiently accurate EXPECTATION of a figure through gathering data.
Need to have good understanding of the DRIVERS of the figure. Then must COMPARE actual figure to expectation and corroborate differences which are above acceptable level. |
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Substantive analytical procedures provide evidence over...
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completeness, existence and accuracy of the entire balance in the financial statements.
Therefore is an efficient test to perform and will REDUCE amount of more detailed substantive procedures required |
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Substantive analytical procedures can help to keep
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the audit fee to the required level
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what stages are Analytical procedures required to be performed at?
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PLANNING - risk identification technique - can direct audit work to areas where there may be error / misstatement
SUBSTANTIVE TESTING - effective testing technique covers all areas FINAL REVIEW - assess overall reasonableness of FS |
