Identify the Steps Used by the Auditor When Performing Analytical

Question

Examlex · Accepted Answer

The Answer is When performing analytical procedures,the steps the auditor performs can be summarised as follows:
-Identify the computation,comparison or relationship to be made or to be investigated.
-Assess the reliability of any data to be used.
-Estimate the probable balance in the account or the probable outcome of the computation.
-Make whatever computations are needed using data in the client's records or data from reliable outside sources.
-Compare the estimated amount with the computed or recorded amount and evaluate whether the difference,if any,is significant.
-Determine appropriate procedures for investigating the reasons for the difference if it is significant.
Perform the procedures.
-Draw conclusions.

Identify the Steps Used by the Auditor When Performing Analytical

Definitions: