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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

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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 three main types of audits?

The three main types of audits are financial audits, operational audits, and compliance audits. Financial audits focus on financial statements and records to ensure accuracy and compliance with regulations. Operational audits assess efficiency and effectiveness of processes and procedures. Compliance audits verify adherence to laws and regulations.


Which term defines the process of project compliance with policies and procedures?

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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].


What are analytical procedures?

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.


What other types of analytical procedures detect the presence of proteins?

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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


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What are analytical procedures in an audit?

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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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What is the primary purpose of substantive analytical procedures?

The primary purpose of substantive analytical procedures is to evaluate the relationships and trends within financial information to identify any discrepancies or anomalies that may indicate potential misstatements or errors in the financial statements. This helps auditors assess the reasonableness of account balances and gather evidence to support their audit conclusions.