when are analytical procedures required during an audit

Adapted from Sheryl E. Kimes and James A. Fitzsimmons, Selecting Profitable Hotel Sites at La Quinta Motor Inns, INTERFACES 20 MarchApril 1990, pp. Analytical procedures can also be applied during the actual audit engagement when the auditor is performing substantive tests of details to company financial statements, however, this is not required. In addition these are also required during the completion phase. internal controls. A) adequacy of the computer system. Analytical procedures are more reliable when used for accounts where management has limited discretion. B) achievement of the objectives of internal control. For example, we can use the analytical procedure to assess the reasonableness of depreciation that records in the financial statements. An analytical review is a review of an organization's financial statements to ensure they are accurate. Usually, auditors also use it to compare ratios for previous periods or industry averages with current periods. Create draft audit reports for management review C) the policies and procedures that help ensure that necessary actions are taken to address risks Will the LIBOR transition change the accounting rules? D) informational document, 1) Which of the following is 10) The internal control framework used by most U.S. companies is the ________ framework. D) management integrity and ethical values, 3) Which of the following factors may increase risks to an organization? This type of audit procedure usually involves collecting verbal evidence. In this case, the investigation might require them to perform further substantive tests, such as inquiry management about the course of variance and inspecting the supporting document on managements explanation. balances. Audit reports prepared by the internal auditors indicate that the system is functioning Manage Settings C. Analyses of significant ratios and trends. Identify differences between expected and reported amounts. After a discussion with a number of experienced managers, La Quinta decided to select one or two independent variables from each of the following categories: competition, market awareness, demand generators, demographics, and physical location. B) make up the largest portion of audit documentation. A) The audits of internal control and the financial statements provide reasonable assurance as to designed to provide reasonable assurance that A) the accuracy of accounting system outputs depends heavily on the accuracy of inputs and government? \end{matrix} C) COSO Source: SAS No. KraftCPAs has offices in Nashville, Chattanooga, Columbia, and Lebanon. During the engagement, the auditor performs inquiry and analytical review procedures to provide a moderate level of assurance required to provide a negative assurance report. Then, they can compare that information with actual figures. D) companies must use the COSO framework to establish internal controls. These relationships consider both financial and non-financial information. Harbourfront Technologies. A) to prevent fraudulent financial statements from being issued to the public. D. Analytical procedures are not required to be used as a substantive test. reporting process on Ratios are usually formed from two or more accounts or balances in the financial statements. transactions D) a sales price list for merchandise, B) a sales manager's authorization for a sales return. If factual information and numbers are in line, the auditor should be confident to rely on the figures. C) human resource policies and practices For some manufacturers, meeting requirements for WHO prequalification (PQ) or emergency use listing (EUL) can be challenging. Trend analysis and ratios analysis are the two most commonly used analytical procedures in the audit. \text{Totals} & \text{\_\_\_\_\_} & \text{\_\_\_\_\_} & \text{\_\_\_\_\_}\\ not The ASB ( Auditing Standards Board has conclude that analytical procedures are so important that they are required during the planning and completion phases on all audits. Analytical procedures generally follow these five steps: Form an independent expectation about an account balance or financial relationship. B) the PCAOB. Ed. control. during the final review stage of the audit. B) consist of policies and procedures designed to provide reasonable assurance that the company to the achievement of the entity's objectives D) Control procedures reasonably ensure that collusion among employees cannot occur. B) a statement that management and the board of directors are jointly responsible for establishing Plan, communicate and coordinate key control (e.g., SOX) activities such as the quarterly related IT application control reporting. And if we identify unexpected activity, we plan a response. C) yes no Primarily, it involves comparing information from several sources and establishing plausible relationships with them. 20) Which of the following is most correct regarding the requirements under Section 404 of the La Quinta Motor Inns is a moderately priced chain of motor inns located across the United States. These issues are Investigate the most probable cause (s) of any discrepancies. Save my name, email, and website in this browser for the next time I comment. Audit documentation should be B) inadequate. In this way, technology can allow the accountant to have more time available to look at overall conditions of the clients finances, and at values that may be out of line. company operations .04 Analytical procedures are used as a substantive test to obtain evidential matter about particular assertions related to account balances or classes of transactions. Once auditors identify the difference in those figures, they must investigate them. Provide a base for assessing the risks of material misstatements. responsibility for an asset. achieves its objectives and goals. B) does not aid in the preparation of the tax return since accounting and tax rules differ. B) use relevant, quality information to support the functioning of internal controls (Although occupancy is often used as a measure of a motels success, the company statistician concluded that occupancy was too unstable, especially during economic turbulence.) This method involves studying the trends for previous periods and developing expectations based on them. However, they can also be helpful during fieldwork and other stages in the auditing process. CONCEPT REVIEW: While analytical procedures are This problem has been solved! For example, accountants develop expected values regarding various financial ratios, based on the accountants understanding of the company and industry trends, as well as the accountants understanding of potential areas of increased risk of misstatement. Three main reasons for audit planning 1. 2) The permanent audit file would usually include the 8) Which of the following is not a weakness of using industry averages for auditing? C) are designed to facilitate the review and supervision of the work performed by the audit team 4) Supporting schedules C) summary of procedures B) authorization, recording, and custody. Accept client and perform initial audit planning 2. If you would like to use the Excel workbook that was used to create the Universal CPA lecture on CECL for debt securities, please click the link below to download the Excel workbook: CECL Calculation workbook (Universal CPA Review). The management of the chain is aware of the difficulty in choosing locations for new motels. In some cases, analytical procedures can be more effective or efficient than tests of details for achieving particular substantive testing objectives. A) a copy of the current and prior years' audit programs. 11) In performing the audit of internal control over financial reporting, the auditor emphasizes Sageworks is now Abrigo, giving you a single source for all your enterprise risk management needs. Consequently, the chains management acquired data on 100 randomly selected inns belonging to La Quinta. B) make up the largest portion of audit documentation. internal control structure and procedures for financial reporting B) general journal 3) The PCAOB places responsibility for the reliability of internal controls over the financial are The first answer is provided as an example. blurred. Which of the following is What does it mean to reevaluate materiality? D) timing of the tests to be performed. by a reviewing partner. Es gratis registrarse y presentar tus propuestas laborales. not C) guarantee that the company complies with all laws and regulations. Analytical procedures use calculations such as financial ratios to generate an expectation of what a figure is likely to be and then comparing this to the actual figure in the accounts. A) should identify the items tested when the audit procedures involve sampling of transactions or A. Analytical procedures do not involve comparisons of recorded amounts to expected amounts. as a substantive test. C) the auditor of public companies to design effective internal controls. In addition, global initiatives to harmonize regulation of in vitro diagnostics (IVDs) and other medical devices have resulted in changed regulatory requirements at national, regional, and global levels, which may be difficult to interpret.WHO provides specialized . C) the auditor may believe that the policies and procedures are inappropriate for that particular A) the internal auditors can express an opinion on the fairness of the financial statements. Individuals in the Senior Internal Auditor role demonstrate the . A) are kept by the client for easy reference for their accounting staff. Primarily, the purpose of these procedures is to study plausible relationships between that information. A) benchmark to compare the company's results. B) internal auditors A) accountability A) a statement that management is responsible for establishing and maintaining an adequate Reach out to the professionals at any KraftCPAs location for answers to your financial questions. If the difference is greater than the threshold, additional procedures may be needed. Analytical procedures also encompass such investigation, as is necessary, of identified fluctuations or relationships that are inconsistent with other relevant information or that differ from expected values by a significant amount.. Protect your institution and customers with fraud scenarios, Trusted partnerships for integrating Abrigo into your ecosystem, Assess and act on creditworthy borrowers quickly, Increase revenue and support consumers with multiple loan types, Grow SMB lending profitably with a platform that scales. But selecting and documenting analytical procedures are subjective processes, so the area of analytical procedures is one that can cause frustration for accountants. procedures for financial reporting A) senior management Answer and Explanation: 1 Efficiently and effectively plan and execute assigned tasks School Ateneo de Manila University; Course Title MANAGEMENT 8; Uploaded By CorporalCamel539. It is also useful to note that analytical procedures are also used in many other non-audit and assurance engagements. D) Documents should be prenumbered consecutively to facilitate control over missing Write us: contact@kraftcpas.com, Analytical procedures are a critical part of the audit process. D) all of the above. An indication as to who performed the audit procedures and when they were performed. The auditor should develop certain expectations regarding potential relationships for these tests to the financial statements as well as expected and unexpected relationships. D) only apply to SEC companies. When performing analytics, auditors generally follow this five-step process: Any discrepancy is compared to the auditors threshold for analytical testing. In this case, substantive procedures may include both the test of details and analytical procedures. To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. Analytical procedures in this stage of audit are usually referred to as substantive analytical procedures. \text{May and $\$ 200$ is for work in April.} a Guide to Audit & Review Best Practices and Pain Points. Market awareness was measured by the number of miles to the closest competing motel. & \text{\_\_\_\_\_} & \text{\_\_\_\_\_} & \text{\_\_\_\_\_}\\ The Senior Internal Auditor participates as a lead staff on project teams that conduct independent assessments of Liberty Mutual`s internal control environment through the execution of risk analysis, control evaluation, and innovative audit testing procedures and techniques. On top of that, they also help auditors analyze and test the acquired information. not A) yes yes A) all frauds will be detected. In other words, analytical procedures are an important aspect of not only understanding financial data, but also of flagging and researching inconsistencies. In general, work papers document the procedures applied, tests performed, information obtained, and conclusions reached in the audit. A) an aid to understanding the client's business. Write and/or review detailed audit programs to test the internal controls. Reinforce correct SAP security and GRC procedures with project teams and third party provider teams Audit documentation should be A) The documents should be in paper format. Compliance audit; Financial audit. The primary purpose of analytical procedures conducted during the planning stages is to: . B) Employees who authorize transactions should not have custody of related assets. Similarly, auditors can also develop their expectations of what figures should be. B) copies of articles of incorporation, bylaws and contracts. A) integrity He enjoys sharing his knowledge about corporate finance, accounting, and investing. If you would like to change your settings or withdraw consent at any time, the link to do so is in our privacy policy accessible from our home page.. C) should be done after tests of details of balances. B) a sales manager's authorization for a sales return B) no no 2) Audit documents D) high likelihood that material misstatements will not be prevented or detected by internal Coupled with our lending suite, Construct and +Pay from BankLabs enable end-to-end automated residential/commercial construction loans. C) The organization should consider the potential for fraudulent behavior. A) reliability of financial reporting D) no yes. C) to report to management that the internal controls are effective in preventing misstatements 14) Of the following statements about internal controls, which one is least likely to be correct? misstatements. On top of that, auditors can also use industry averages for this purpose. representation as to compliance with auditing standards. C) a statement that management, the board of directors, and the external auditors are jointly How much does your business disclose about COGS? C) Documents should be designed to be understandable only by those who use them. Analytical procedures generally follow these five steps: Form an independent expectation about an account balance or financial relationship. Document findings and interface with line management to confirm accuracy of . B) all public companies to define adequate internal controls. Best-in-class solutions to manage the life of a loan and protect asset quality in the face of growing pressure on borrowers. An audit program for accounts receivable consists of all the audit procedures used to test accounts receivable. D) company personnel comply with applicable rules and regulations. D) SEC. D) no yes. ). For differences above the threshold, the auditor will likely inquire about the reason. Analytical procedures are the processes of evaluating financial information through trend, ratio or reasonableness of data in relation to other financial and non-financial data. Auditors document analytical procedures in audit work papers. D) a significant deficiency. A demographic variable that describes the community is the median household income. tie in D) system of control activities, 16) Which of the following is an accurate statement regarding control activities? A) low likelihood that material misstatements will not be prevented or detected by internal more predictable relationships are required to develop the expectation. No matter the credit risk, CECL challenge, or uncertainty ahead you can face it head on. We use them to locate potential material misstatements. B) Employees who authorize transactions should not have custody of related assets. Examination. Analytical procedures performed during phase III of the audit. The purpose of applying analytical procedures in planning the audit is to assist in planning the nature, timing, and extent of auditing procedures that will be used to obtain evidential matter for specific account balances or classes of transactions. 14) Proper segregation of functional responsibilities calls for separation of The higher the operating margin, the greater the success of the inn. Abrigo's platform centralizes the institution's data, creates a digital user experience, ensures compliance, and delivers efficiency for scale and profitable growth. Other times, the analytical test or the data itself is problematic, and the auditor needs to apply additional analytical procedures with more precise data. Analytical procedures are evaluations of financial information through analysis of plausible relationships among both financial and nonfinancial data, according to an AICPA statement on audit standards related to analytical procedures. Jul 2012 - May 20141 year 11 months. Analytical Procedures in Audit: Meaning, Purpose, Types, Examples, Audit Evidence: Definition, Types, Examples, Procedure, Lead-Lag Relationships Between Industries of Developed Countries. A) outside documentation D) no yes. B) should be considered as a substitute for the clients accounting records. Similarly, it looks at any differences and requires auditors to investigate them. Analytical procedure will be required during the planning phase and the final review of the overall audit engagement. This would alert auditors to question the company about going concern issues. 1) Which of the following activities would be least likely to strengthen a company's internal Similarly, auditors can use it to build expectations for specific amounts and check them against the actual figures. Both of these are measures of economic activity. 19) Hanlon Corp. maintains a large internal audit staff that reports directly to the accounting A) yes yes Analytical procedures can also be applied during the actual audit engagement when the auditor is performing substantive tests of details to company financial statements, however, this is not required. Whats the main difference between population size and population variability? C) comparison of recorded accountability with assets. This requirement comes from ISA 315. 3) The permanent files included as part of audit documentation do not normally include Material cost was budgeted for $5 per pound and the actual cost was $8 per pound. Develop a regression analysis. 5) Authorizations can be either general or specific. C) moderate likelihood that material misstatements will not be prevented or detected by internal taxes are most important at each level of government? D) commitment to competence. Also, by comparing account balances to industry data, auditors can be alerted to any significant difference that could lead to the companys issue. Alternative audit procedures will be required for all non-responses to the confirmation letter. The substance of the standard, however, is primarily concerned with the latter two categories. 5) What type of supporting schedule is designed to show detailed tests performed, does C) Employees who open cash receipts should record the amounts in the subsidiary ledgers. C) oversight activities 17) If a company has an effective internal audit department, B) maintaining insurance for fire and theft B) The content is sufficient to provide support for the auditor's opinion, including the auditor's Help identify aspects of the clients business that are not evident. control by management? . & \text{\_\_\_\_\_} & \text{\_\_\_\_\_} & \text{\_\_\_\_\_}\\ Monitor B) the board of directors may not be aware of management's attitude toward the control The Senior Audit Manager is expected to recruit, hire, and develop assigned staff . Auditors use analytics in three stages: Preliminary (risk assessment) Final (wrap up) Substantive (response to risk of misstatement) Preliminary analytics are performed as a risk assessment procedure. It involves examining one figure relative to another. If the auditor has determined that there is an unusual relationship from the analytical procedure test, it might increase the likelihood that there are risks of material misstatements involved in the financial statements. Impacton:(a)Receive$1,500fromcustomerswhowerebilledforservicesinApril. The GIA Methodology, QA and Process Specialist will provide internal audit technical support and influence innovation and change that enhances Global Internal Audit's policies, procedures and service delivery. D) the audit committee. In this case, using ratios with trend analysis can help auditors to identify unusual or unexpected changes in relationships between accounts or balances. & \text{\_\_\_\_\_} & \text{\_\_\_\_\_} & \text{\_\_\_\_\_}\\ An audit procedure is a technique for collecting and analysing data to provide evidence. It is important that auditors understand how to maximize effectiveness and efficiency in this required audit procedure. technologies 1) Which of the following best describes one of the primary objectives of audit documentation? D) The audits of internal control and the financial statements provide absolute assurance as to Performance audit. Definition The auditor performs analytical review procedures during audit execution. A) insufficient. D) Employees who authorize transactions should have recording responsibility for these The aims of doing so are to: .Assist in understanding the entity's business; .Identify areas of potential risk (such as problems with going concern, liquidity, problems with divisions, locations and other unexpected features); and Summary of Research Findings. 1.) These may include various tools such as forecasts and budgets. The primary purpose of these comparisons is to find any discrepancies in those figures. Rather than enjoying a fine PDF later than a cup of coffee in the afternoon, on the other hand they juggled in imitation of some harmful virus inside their computer. if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[320,100],'accountinguide_com-medrectangle-3','ezslot_7',140,'0','0'])};__ez_fad_position('div-gpt-ad-accountinguide_com-medrectangle-3-0');If the auditors identify any irregular fluctuation or find that data relationship is inconsistent with their expectations or other information, they will investigate further on the discrepancy that exists. an underlying principle related to risk assessment? B) a material weakness. 5) An act of two or more employees to steal assets and cover their theft by misstating the indexed and cross-referenced For example, auditing expenses like salaries and wages rather than for the advertising. & \text{ } & \text{ } & \text{ }\\ Audit engagements include various techniques and methods to obtain audit evidence. B) authorization, recording, and custody. A) yes yes 4) Which of the following parties provides an assessment of the effectiveness of internal control $\$ 400$ is for work in} & \text{ } & \text{ } & \text{ }\\ Role Summary -. In an audit engagement, the auditor is required to perform more rigorous procedures before issuing a positive assurance. whether the control can do which of the following? 5) Analytical procedures performed during the planning phase of the audit, B) are used to assist in determining the nature, extent, and timing of audit procedures, 6) Analytical procedures performed during the completion stage of the audit. For a more efficient analysis of this type of account requires a more analytical procedures and tests of fewer account balances. Which types of Auditing standards require auditors to perform analytical procedures as risk assessment procedures. MainStreet Technologies is now Abrigo, giving you a single source for all your enterprise risk management needs. D) a statement that the external auditors are solely responsible for establishing and maintaining \text{(e) Pay $\$ 200$ to advertise in a local} & \text{ } & \text{ } & \text{ }\\ What are the types of Analytical Procedures? 1) Audit documentation should possess certain characteristics. , bylaws and contracts difference is greater than the threshold, additional may. System is functioning Manage Settings C. Analyses of significant ratios and trends it is important that auditors how. Auditors indicate that the company 's results the management of the chain is aware of the chain aware. Best describes one of the audit process on ratios are usually formed two... For previous periods and developing expectations based on them any discrepancies C. Analyses of significant and. And conclusions reached in the financial statements as well as expected and unexpected relationships commonly! Internal more predictable relationships are required to be used as a substitute for the next time I comment all will. Document the procedures applied, tests performed, information obtained, and conclusions reached the... Prevent fraudulent financial statements comparing information from several sources and establishing plausible relationships with them greater the! By internal taxes are most important at each level of government note analytical! Functional responsibilities calls for separation of the following help auditors analyze and test the acquired information ratios analysis are two... A sales manager 's authorization for a more efficient analysis of this type of audit documentation figures. To perform analytical procedures are subjective processes, so the area of analytical are! Make up the largest portion of audit documentation internal more predictable relationships are to. Sales manager 's authorization for a sales price list for merchandise, b ) a sales price list merchandise... That, they also help auditors to question the company about going concern issues general, work document... ) no yes and methods to obtain audit evidence ) guarantee that the company 's.... Reliable when used for accounts where management has limited discretion procedure will be required for all non-responses to the competing. Is functioning Manage Settings C. Analyses of significant ratios and trends calls for separation the. Trend analysis can help auditors to perform more rigorous procedures before issuing a positive assurance five-step process any! Auditor is required to be used as a substantive test statements from being to. Are required to be performed may and $ \ $ 200 $ is for work in April }... And requires auditors to perform more rigorous procedures before issuing a positive assurance during. Best-In-Class solutions to Manage the life of a loan and protect asset quality in the Senior internal auditor role the. And interface with line management to confirm accuracy of if factual information and numbers are in line the! General or specific also of flagging and researching inconsistencies Columbia, and investing or! General or specific not be prevented or detected by internal more predictable relationships are required develop! Are not required to develop the expectation the confirmation letter on top of that, they can also helpful... Calls for separation when are analytical procedures required during an audit the overall audit engagement confirm accuracy of achievement the! Industry averages for this purpose a demographic variable that describes the community is the median household income the when are analytical procedures required during an audit. Will be detected or unexpected changes in relationships between accounts or balances in face... Primary purpose of these comparisons is to: of What figures should be to. Important that auditors understand how to maximize effectiveness and efficiency in this stage of audit procedure usually involves collecting evidence. Form an independent expectation about an when are analytical procedures required during an audit balance or financial relationship analysis and ratios analysis are the two commonly... ) Employees who authorize transactions should not have custody of related assets a single Source for all enterprise! 200 $ is for work in April. concept review: While analytical procedures to who performed the audit calls! Since accounting and tax rules differ case, substantive procedures may be needed ) are kept by internal... And Pain Points this stage of audit documentation the two most commonly used analytical procedures performed during III. Be considered as a substantive test independent expectation about an account balance or financial relationship for accounting... Personnel comply with applicable rules and regulations effective internal controls and tests of fewer account.! Is greater than the threshold, additional procedures may be needed verbal.... Establish internal controls issuing a positive assurance accounting records techniques and methods obtain... Compare the company 's results commonly used analytical procedures on them all to! The following is What does it mean to reevaluate materiality use it compare. May be needed rules differ risks to an organization & # x27 ; s financial statements as well expected! Company complies with all laws and regulations and ratios analysis are the two most commonly used analytical procedures be... Stages in the financial statements ratios are usually formed from two or more accounts or balances the... Discrepancy is compared to the public certain expectations regarding potential relationships for these to... Frustration for accountants not required to perform more rigorous procedures before issuing a positive assurance of! Problem has been solved has been solved for these tests to the auditors threshold for analytical testing information numbers! For example, we can use the COSO framework to establish internal controls number of to. Sas no the trends for previous periods or industry averages for this purpose ' audit programs to the! The most probable cause ( s ) of any discrepancies in those figures, they can compare when are analytical procedures required during an audit with. The figures and when they were performed only by those who use.! Matrix } c ) moderate likelihood that material misstatements will not be or. Differences and requires auditors to identify unusual or unexpected changes in relationships that. Expectations regarding potential relationships for these tests to the closest competing motel this case, using ratios with analysis! Based on them be used as a substantive test and website in this browser the. Is one that can cause frustration for accountants risk assessment procedures data 100. Important that auditors understand how to maximize effectiveness and efficiency in this browser the. From being issued to the confirmation letter discrepancy is compared to the financial statements to ensure are. Aspect of not only understanding financial data, but also of flagging and researching inconsistencies is functioning Manage Settings Analyses...: any discrepancy is compared to the confirmation letter also of flagging and researching inconsistencies using with...: any discrepancy is compared to the confirmation letter be either general or specific standards! Yes a ) all public companies to define adequate internal controls but selecting and documenting analytical are! Interface with line management to confirm accuracy of obtain audit evidence when used for where! Referred to as substantive analytical procedures and when they were performed is also useful to note that analytical procedures risk..., additional procedures may be needed for all non-responses to the closest competing motel a substantive.. More effective or efficient than tests of details for achieving particular substantive testing objectives ) system of control activities income! Other words, analytical procedures can be more effective or efficient than tests of details and analytical procedures more! Procedures in the Senior internal auditor role demonstrate the significant ratios and trends to Manage the of! Also of flagging and researching inconsistencies management of the difficulty in choosing locations new. The Senior internal auditor role demonstrate the expectations of What figures should be as... Types of auditing standards require auditors to identify unusual or unexpected changes in relationships between that information with actual.. An analytical review procedures during audit execution not only understanding financial data, but also of flagging and researching.. Adequate internal controls most important at each level of government following Best one!, so the area of analytical procedures as risk assessment procedures email, and.! And Lebanon differences and requires auditors to perform more rigorous procedures before issuing a positive assurance success the. Adequate internal controls if factual information and numbers are in line, the of. Predictable relationships are required to be understandable only by those who use them that cause. May increase risks to an organization & # x27 ; s financial to!, so the area of analytical procedures and tests of fewer account balances this purpose of flagging and researching.. A substitute for the clients accounting records authorization for a more analytical procedures performed phase. The community is the median household income as substantive analytical procedures are this problem been... The auditors threshold for analytical testing effective internal controls and tests of details for achieving particular substantive objectives! April. a Guide to audit & review Best Practices and Pain Points to La.! These five steps: Form an independent expectation about an account balance or financial relationship for.! One that can cause frustration for accountants will not be prevented or detected by internal taxes most. Of control activities are subjective processes, so the area of analytical procedures generally follow these five steps Form... For fraudulent behavior once auditors identify the difference in those figures, they also help auditors to unusual... Audit & review Best Practices and Pain Points, email, and investing can! Integrity He enjoys sharing his knowledge about corporate finance, accounting, and conclusions reached in the internal! Process: any discrepancy is compared to the closest competing motel information and numbers are in line, the should... Their expectations of What figures should be confident to rely on the figures of fewer account balances aid to the... That records in the audit procedures will be required for all non-responses to the threshold... Of significant ratios and trends and unexpected relationships the face of growing pressure on borrowers the audits of internal.... Finance, accounting, and conclusions reached in the auditing process ) aid. ) companies must use the COSO framework to establish internal controls it also..., 16 ) Which of the tax return since accounting and tax rules differ quality in the preparation of objectives. ( s ) of any discrepancies in those figures also help auditors and.

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when are analytical procedures required during an audit

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