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.
Learning 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
Major Topics
- 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
