What is Analytical Procedure in Accounting

Introduction

To collect the elements which allow him to reach conclusions on the basis of which he bases his opinion on the accounts, the statutory auditor uses different control techniques, including that of analytical procedures.

The purpose of this standard is to define the principles relating to the use of this technique by the statutory auditor.

Must Read: Implementation of Analytical Procedure

Definitions of Analytical Procedure

Substantive controls: audit procedures implemented to detect material misstatements at the assertion level. They include:

• Detail testing;
• Analytical procedures;

Analytical procedure: control technique which consists in assessing financial information from:

their correlation with other information, whether or not from the accounts, or with previous, subsequent or forecast data from the entity or similar entities, and analysis of significant variations or unexpected trends.

Learn More: