Analytical procedures are used for the following purposes: To assist the auditor in planning the nature, timing, and extent of other auditing procedures. As a substantive test to obtain evidential matter about particular assertions related to account balances or classes of transactions.
What are analytical review procedures?
The accounting profession defines analytical review procedures as, ”evaluations of financial information through analysis of plausible relationships among both financial and non-financial data.
What are the steps of audit planning?
Audit Process
- Step 1: Planning. The auditor will review prior audits in your area and professional literature.
- Step 2: Notification.
- Step 3: Opening Meeting.
- Step 4: Fieldwork.
- Step 5: Report Drafting.
- Step 6: Management Response.
- Step 7: Closing Meeting.
- Step 8: Final Audit Report Distribution.
What is objective 8 of Audit planning and analytical procedures?
Auditing and Assurance Services, 15e (Arens) Chapter 8 Audit Planning and Analytical Procedures Learning Objective 8-1 1) A measure of how willing the auditor is to accept that the financial statements may be materially misstated after the audit is completed and an unqualified opinion has been issued is the: A) inherent risk.
What are the terms of initial audit planning?
Answer: B Terms: Initial audit planning Diff: Easy Objective: LO 8-2 AACSB: Reflective thinking skills 6 Copyright © 2014 Pearson Education, Inc. f4) Smith, CPA has requested permission to communicate with the predecessor auditor in order to review certain workpapers for high risk accounts for a new audit client.
How is the development of an audit plan determined?
B) guides the development of the audit plan. C) is determined after the engagement staffing is set. D) is the detailed steps to be followed for the substantive audit tests.
When to accept a low acceptable audit risk?
B) audits with a low acceptable audit risk generally result in lower audit fees. C) if management of a company has a reputation of integrity, but is also known to take aggressive financial risks, the auditor should not accept the company as a new client.
