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This proposed statement on auditing standards responds to public expectations of auditors to assume more responsibility for detecting fraudulent financial reporting by requiring the use of analytical procedures in all audit engagements. Analytical procedures can be effective in identifying financial misstatements and alerting the auditor to the possiblity of certain types of material irregularity.
Auditing, Analytical review
Accounting | Taxation
American Institute of Certified Public Accountants. Auditing Standards Board, "Proposed statements on auditing standards: analytical procedures ;Analytical procedures" (1987). Statements of Position. 500.