Auditing and Assurance Services Assignment - Distinguish between analytical procedures required by ASA315 and ASA520
You have learned that ASA 315 stipulates analytical procedures be used as risk assessment procedures, while ASA 520 stipulates their use as substantive procedures. The standards also discuss the nature and purpose, extent of reliance on analytical procedures and subsequent investigation of unusual items identified.
Using the financial report/statements of the company that your Group Assignment and Presentation has chosen: Company name- Billabong.
a) Identify and briefly explain two (2) ways you could use analytical procedures as risk assessment procedures, and
b) Identify and briefly explain two (2) ways you could use analytical procedures as substantive procedures during the audit.
This requires you to use the material from your chosen company to illustrate the application of ASA 315 and ASA 520, using Analytical Procedures to the audit process. You are asked to provide examples from the financial statements to support your explanation.
Use the following templates for your answers.
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Analytical procedures as risk assessment procedures (ASA315)
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Analytical Procedure
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Explanation
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Analytical procedures as substantive procedures during audit (ASA520)
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Analytical Procedure
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Explanation
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Need to copy the table in word and then choose two example for each of the one and explanation.