What is a analytical review?
What is a analytical review?
What is an Analytical Review? An analytical review is used by auditors to assess the reasonableness of account balances. A CPA does this by comparing changes in account balances over time, as well as by comparing related accounts.
What is a substantive analytical procedure?
Substantive analytical procedures. Analytical procedures are used as substantive procedures when the auditor considers that the use of analytical procedures can be more effective or efficient than tests of details in reducing the risk of material misstatements at the assertion level to an acceptably low level.
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 was the purpose of the Analytical Review?
Unusual for its time, the Analytical Review brought current foreign-language publications, particularly those with a scientific, philosophical, or aesthetic bent, to its readers’ attention. For example, it approvingly reviewed Friedrich Schiller’s Fiesco (published by Johnson) and argued that more of the author’s works should be translated.
Who was the publisher of the Analytical Review?
Analytical Review. The Analytical Review was an English periodical that was published from 1788 to 1798, having been established in London by the publisher Joseph Johnson and the writer Thomas Christie.
When is an analytical procedure is more effective?
When expectations are developed at a more detailed level, it is more likely that the analytical procedure will address more effectively the assessed risk of misstatement to which it is directed. Relationships are usually more predictable in a stable environment than in an unstable one.
Why are preliminary and late stage analytical procedures not critical?
Because the objectives of preliminary and late-stage applications of analytical procedures are not to gather audit evidence to support recorded values, the design and reliability of procedures performed for these purposes are not critical to supporting the audit opinion.