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Analytical procedures consist of evaluations of financial information made by a study of plausible relationships among both financial and non-financial data. They range from comparisons to use the complex models involving many relationship and elements of data. They involve comparisons of recorded amounts, or ratios developed from recorded amounts, to expectations developed by the auditors.


a. Describe the broad purposes of analytical procedures

b. When are analytical procedures required during an audit? describe why auditors use analytical procedures extensively in all parts of the audit.

c. Describe the factors that influence the extent to which an auditor will use the results of analytical procedures to reduce detailed tests in meeting audit objectives.

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