1. Qi Jiang Mimi sproul carigrussling Analytical Procedures

2. SAS No. 56, AU 329, ISA 520 AU 329 States: “Analytical procedures are an important part of the audit process and consist of evaluations of financial information made by a study of plausible relationships among both financial and nonfinancial data. Analytical procedures range from simple comparisons to the use of complex models involving many relationships and elements of data.”

4. find potential account errorsPossible procedures to be used include: account balance comparisons, and important ratios. Inventory Turnover = Cost of Goods Sold/Inventory

5. Substantive Procedures Step 1: Develop an Expectation Step 2: Define a Tolerable Difference Step 3: Compare the expectations to the recorded amount Step 4: Investigate Differences Greater than the Tolerable Difference

7. Budgets and forecasts

8. Industry and Competitor Information

10. The Plausibility and Predictability of the Relationship Being Studied

11. Data Reliability

19. Preliminary, Substantive, and Final

20. What are the three main types of analysis used for analytical procedures?

21. Trend, Ratio, and Reasonableness

22. What is the most important step in performing analytical procedures?

23. Develop an expectation

24. Substantive procedures can test all transactions and balance assertions except which one?

26. Messier, William F., Steven M. Glover, and Douglas F. Prawitt. "Chapter 5." Auditing & Assurance Services: a Systematic Approach. New York: McGraw-Hill/Irwin, 2010. 154-70. Print.