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Analytical procedures are "one of many financial audit processes which help an auditor understand the client's business and changes in the business, and to identify potential risk areas to plan other audit procedures." So essentially these are the procedures that an auditor goes through to look at risks within the business.
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What is the primary purpose of substantive analytical procedures?
the primary purpose of substantive analytical procedures is to provide evidence as to the validity of an account balance.
What is the first step in the analytical procedures process used in an audit?
The first step in the analytical procedures process is the development of an expected account balance.
What are the differences between substantive procedures and substantive analytical procedures?
They are not both "analytical", but "substantive" and "analytical". Substantive procedures are reviews of documents for a "substantial portion" of account activity, while analytical procedures includ controls test and test relying on mathematical relationships reflectinb accounting mecvhanics, contractual provisions [debt times interest rate], or business capabilities [production per machine hour or day].
Outlines the steps in an Analytical Procedures?
The question has no meaning - too little detail
What other types of analytical procedures detect the presence of proteins?
biuret reagent
What are the components of analytical procedures?
developed by Hirst and Koonce (1996) describes the performance of analytical procedures as consisting of five components: expectation development, explanation generation, information search and explanation evaluation, decision making, and documentation
Who has required analytical procedures for audits?
has required that analytical procedures be performed during all audits of financial statements. The Auditing Standards Board did so through the issuance of Statement on Auditing Standards (SAS) No. 56 in 1988
What are analytical procedures in an audit?
SAS No. 56 describes analytical procedures as the "evaluation of financial information made by a study of plausible relationships among both financial and non-financial data" (AICPA, 1998, 56 p. 1).
What is one of the most important steps in the analytical procedures process?
it is a matter of professional judgment in determining whether the evidence adequately supports the explanation. This is one of the most important steps of the analytical procedures process and is referred to as the decision phase of the process.
What are the Three analytical procedures commonly used when auditing accounts in the inventory and warehousing cycle?
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At what point in the audit are tests of details most appropriately designed?
perform analytical procedures and tests of balances
What substantive procedure would you perform in the audit of revenue?
Mostly Analytical procedures are performed when verifying Sales / Revenue
