Ensure a timely analytical review
of the account balances of all low-risk accounts to ensure they provide adequate evidence upon which to base a conclusion that the accounts contain a significant or material misstatement.
Although auditors traditionally perform preliminary analytical review
procedures in every financial statement audit engagement, such analytical procedures generally use data aggregated at a high level Therefore, the results of those analytical procedures only provide a broad initial indication about whether a material misstatement of the financial statements may exist.
The impact of analytical review results, internal control reliability, and experience on auditors' use of analytical review.
Auditor's assessments of the likelihood of error explanations in analytical review.
The risk-assessment standards require that auditors perform risk-assessment procedures during planning, such as a preliminary analytical review and obtaining an understanding of the entity and its internal controls.
Most of the analytical review techniques that auditors can apply during the planning stage are simple when compared to the more-complex procedures performed when using data extraction and analysis software.
Auditors can rely on analytical reviews and efficiency measures used by the system when production documentation is not complete.
Out of a comprehensive list of ratios that auditors typically use in analytical reviews, only four ratios showed a statistically significant change after JIT/TQM adoption: inventory turnover, working capital turnover, current ratio, and acid test (quick) ratio.
The analytical review
consists of applying analytical procedures to determine whether the conclusions reached during an audit are valid or, in the case of a review that the financial statements do not appear to contain material misstatement.
Today's economic uncertainty has put new pressure on enterprises to perform even more cautious analytical reviews
of their current and proposed e-business programs," explains Carl Frappaolo, executive vice president and leader of Delphi's consulting practice.
The research will include analytical reviews
, profiles, and comparisons of "one to one" leading hardware and software solutions.
They will give quite a bit more, such as control of statistical testing, tracking of confirmations, producing workpapers for specific account analyses, generating defined ratio analysis, and performing multiple level analytical review