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How do Analytical Procedures assist the auditor?

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter6: Audit Evidence

Section: Chapter Questions

Problem 13RQSC

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Question

How do Analytical Procedures assist the auditor?

Expert Solution

Step 1

Analytical procedures:

Analytical procedures are the examination of the financial statements. The examination is done on the basis of the relationship established among the financial and non-financial data of the client. The auditor first, establishes a reliable relationship between two or more business data then use the established relationship in the evaluation of the financial statements of the client.

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