Discussion on Analytical Procedures

Analytical Procedures
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Analytical Procedures
* Analytical processes are used to evaluate financial data by examining feasible links between financial and non-financial facts. In the absence of factors to the opposite, a fundamental premise supporting the use of analytical techniques is that credible correlations within different data can rationally be anticipated to occur and remain. These procedures are helpful throughout the audit process. In the risk assessment stage of the audit, analytical procedures help understand a business and its environment (Appelbaum et al., 2017). This aids the auditor in assessing the risk of significant misstatement to establish the type, scheduling, and extent of audit procedures, or in other words, to aid the auditor in designing the audit plan and process. These processes are employed at the stage of the substantive procedure if the auditor considers them to be more appropriate than details' tests in reducing the risk of significant misstatements to an acceptable t...