Auditing Procedures and Practices: Analytical Procedures

Author: Pat Patterson

Review new pronouncements from the AICPA’s Auditing Standards Board (ASB) up to the date of the course. This presentation will inform participants of the latest issues from the ASB and the AICPA for private entities in data analytics. New and revised audit standards, attestation standards, and other new pronouncements about analytical procedures will be discussed. The impact of the Coronavirus and the revised auditing standards resulting from COVID-19 will be examined for current application. Any newly released auditing issues will be visited.

Publication Date: August 2022

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

• Four Phases of Analytical Procedures
• Expectation formation — Phase 1
• Nature of Account or Assertion
• Reliability and Other Characteristics of Data
• Inherent Precision of the Expectation Method Used
• Comparisons
• Identification — Phase 2
• Investigation — Phase 3
• Evaluation — Phase 4
• Q & A for Analytical Procedures
• Expectation of Precision
• Relationship of Analytical Procedures to the Audit Risk Model
• Evaluation and Investigation
• Purpose of Analytical Procedures
• Fraud, Fraud, Fraud
• Considerations for Audits Performed in Accordance With PCAOB Standards

Learning Objectives

• Describe purposes of Analytical Procedures
• Identify requirements of analytical procedures
• Recognize applications of analytical procedures
• Describe updates on selected, related, and connected issues
• Recognize the four phases of analytical procedures and how they apply
• Describe the analysis of changes in an account balance over time

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Auditing (2 hours)

Program Prerequisites
Basic understanding of auditing standards.

Advance Preparation
None