What Are Analytical Procedures?

An analysis procedure refers to a CPA who evaluates financial information by studying the inherent relationships between different financial data and between financial and non-financial data. Analytical procedures are one of the important procedures used by CPAs to understand the audited entity and its environment. ^[1]

Analysis program

Right!

Analytical procedures refer to the process in which CPAs study the internal relationships between different financial data and between financial and non-financial data.

1.Used as

Identify those who need to use analysis procedures

Evaluated risk of material misstatement

In view of

Sources of information available. Data source

Consider the importance and the level of assurance of the plan

The lower the tolerable misstatement, the smaller the acceptable difference ; the higher the plan's guarantee level , the smaller the acceptable difference .

Consider more audit evidence

The lower the acceptable amount of difference , the more the CPA needs to collect more audit evidence in order to find major misstatements in the financial statements as much as possible to obtain the level of assurance of the plan.