Auditing Procedures & Practices: Analytical Procedures
Author: Pat Patterson
| CPE Credit: |
2 hours for CPAs |
This on-demand course will cover AU-C Section 520, Analytical Procedures, which has its source as SAS No. 122 and AU-C Section 520 which is effective for audits of financial statements for periods ending on or after December 15, 2012. This session will address the auditor's use of analytical procedures as substantive procedures (substantive analytical procedures).
Join expert Pat Patterson, CPA, as he addresses the auditor's responsibility to perform analytical procedures near the end of the audit that assist the auditor when forming an overall conclusion on the financial statements. Section 315, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement, addresses the use of analytical procedures as risk assessment procedures (which may be referred to as analytical procedures used to plan the audit). Section 330, Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained, addresses the nature, timing, and extent of audit procedures in response to assessed risks; these audit procedures may include substantive analytical procedures.
Publication Date: August 2018
Designed For
CPAs who are either auditors in public practice, professionals in businesses being audited, professionals in government, professionals in education, or anyone with a need to understand what analytical procedures are about.
Topics Covered
- Objectives of analytical procedures
- Definitions of analytical procedures that relate to comparison to other analytics and other relationships
- Substantive analytical procedures
- Analytical procedures that assist when forming an overall conclusion
- Investigating results of analytical procedures
- Audit documentation of analytical procedures
- Methods may be used to perform analytical procedures
- Suitability of particular substantive analytical procedures for given assertions
- Reliability of the data
- Evaluation of whether the expectation is sufficiently precise
- Investigating results of analytical procedures
Learning Objectives
- Identify relevant and reliable audit evidence when using substantive analytical procedures
- Design and perform analytical procedures near the end of the audit that assist the auditor when forming an overall conclusion about whether the financial statements are consistent with the auditor's understanding of the entity
- Differentiate AU-C sections specifically addressing an auditor's use of substantive analytical procedures
- Identify the phases in the use of analytical procedures
- Differentiate statements with respect to relationships between data
- Recognize types of analytical procedure and how they apply in various scenarios
- Differentiate statements with respect to the identification and investigation phase of analytical procedures
- Identify the effective date of the AICPA Code of Professional Conduct based on the restructuring and codification by AICPA's Professional Ethics Executive Committee
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Auditing (2 hours)
Program Prerequisites
General understanding of generally accepted auditing standards.
Advance Preparation
None
