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The proposed Statement provides guidance with respect to analytical review procedures applied in an examination made in accordance with generally accepted auditing standards. It discusses the timing and objectives of those procedures, identifies the procedures that should be considered in evaluating financial information, and provides a number of examples to illustrate factors the auditor should consider when planning and performing analytical review procedures. However, the proposed Statement does not specify the extent to which the auditor's reliance on substantive tests may be derived from tests of details of transactions and balances, from analytical review procedures or from any combination of both. According to the proposed Statement, the decision is a matter of professional judgment.
Corporations -- Auditing
Accounting | Taxation
American Institute of Certified Public Accountants. Auditing Standards Executive Committee, "Proposed statement on auditing standards : analytical review procedures ;Analytical review procedures" (1978). Statements of Position. 397.