Category Archive for: Analytical Procedures


You are due to commence the final audit of ABC Ltd. a manufacturing company for the year ended June 30, 20×8 and have been presented with a draft set of financial statements for the year which have been prepared by management. Your interim audit was conducted earlier in the year and you came to the conclusion at that stage that systems…

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The objective of analytical procedures in the overall review at the end of audit is to evaluate reasonableness of financial statements as a whole. As a result of planning and the knowledge gained through audit procedures the auditor would not normally expect to find any major unexpected variations. However, in those cases where variations are revealed it may be necessary…

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Analytical Procedures

INTRODUCTION Performance of analytical procedures is mandatory at planning and review stages. It is optional to apply analytical procedures as substantive tests. Analytical procedures enable the auditor to direct audit efforts to areas of financial statements where the reported amounts vary from those that the auditor expected. Example The auditor has obtained knowledge that the capacity of the plant…

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