Analytical Procedures – Comprehending Financial Statement Audit Fundamentals

Learning Objectives

• To identify and link preliminary analytic review results to assessed risk of material misstatement.
• To explore and perform a final overall analysis of audit results.
• To recognize audit standard requirements, including minimum documentation for substantive analytic procedures.
• To discover and design typical substantive analytical procedures.
• To identify quality control deficiencies in substantive analytic procedures.

Course Description

The purpose of financial data preparation is smart decision-making that helps to achieve long-term value for owners. The primary way to do this is to have an evaluation of the financial information. 

To do this all the financial and non-financial information needs to be analyzed for plausible relationships with other data points covering financial as well as non-financial data. Further, this data needs to be investigated for fluctuations or relationships that may be inconsistent with the information or differ from expected values by a significant value. This is what constitutes analytical procedures. 

To make sure that the analytical procedures follow its steps, it is essential that the required data has been properly designed and documented, and the results of the analytics review evaluated. This is only possible when the audit engagement is performed effectively and efficiently. 

This Online CPE webinar provides a comprehensive view for identifying major misstatements with the preliminary analytic review process. It also provides common pitfalls and key auditing standards to follow. It will take care of the tips and techniques necessary to gather sufficient appropriate audit evidence to support conclusions using analytic procedures common to financial statement audits.

The major topics covered are as follows:

• Identifying the risk of material misstatement through preliminary analytic review procedures
• Ensuring sufficient appropriate audit evidence is gathered through the final overall analytic review
• Establishing expectations for analytic procedures
• Properly designing, documenting, and evaluating the results of substantive analytic review procedures
• Disaggregating substantive analytics for stronger results
• Factors impacting the design of substantive analytic procedures
• Common pitfalls in performing substantive analytic procedures

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Overview

• Analytical Procedures Definition

  2 mins
• Case Study - Setting Preliminary Expectations

  16 mins
• How Accountants Typically React

  24 mins
• Case Study - Linking Preliminary Analytics to Identified Risk

  35 mins
• Substantive Analytics Can Improve Audit Efficiency

  53 mins
• Common Acceptance Threshold

  67 mins
• Ten Tips for Improved Use of Analytical Procedure

  95 mins