Analytical Procedures †a Powerful Tool for Auditors by...

Learning Zone Analytical Procedures – A Powerful Tool for Auditors (Relevant to Paper 8 – Principles of Auditing and Management Information Systems) David Chow FCCA, FCPA, CPA (Practising) Audit tests Auditors normally carry out the following types of audit tests to determine whether financial statements are fairly stated: (i) procedures to obtain an understanding of internal control (ii) tests of controls (iii) substantive tests: †¢ substantive tests of transactions; †¢ analytical procedures; and †¢ tests of details of balances. assessment of risks of material misstatement at the assertion level includes an expectation that controls are operating effectively. This means that auditors perform tests of controls only†¦show more content†¦The expected results are estimated based on preliminary discussions with the clients. After having performed their analytical procedures, the auditors then compare the actual results with those expected and look for reasons for any significant variations. Unexplained variations may indicate a misstatement in Analytical procedures Audit procedures (iv) confirmation (vii) analytical procedures. They document the findings and conclusions from the audit procedures performed so as to provide: (i) a sufficient and appropriate record of the basis for the auditors’ report; and (ii) evidence that the audit was performed in accordance with Hong Kong Standards on Auditing and applicable legal and regulatory requirements. April 2009 T/Dialogue Learning Zone the figures in that area, which would lead the auditors to plan their audit work to devote more time and resources to those areas. When the application of analytical procedures does not identify any unusual or unexpected differences, the results provide evidence in support of management’s assertions. Timing and purpose of analytical procedures Analytical procedures may be performed at any of all three stages in the audit process: the planning phase, the testing phase and theShow MoreRelatedContemporary Issues in Management Accounting211377 Words   |  846 PagesBritish audit profession to account with his questioning of ‘who shall audit the auditors?’ The subsequent institutional response has most likely gained as much from the likes of Professors Harold Edey, Bryan Carsberg, Ken Peasnell, Geoffrey Whittington, and  ´ David Tweedie as it has from the eminence grise of the profession itself. And even in auditing, significant roles have been play ed by Professors Peter Bird, David Flint, and Peter Moizer amongst others. Indeed it is possible to argue that theRead MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 Pagesof Accomplishing Our Goals† 204 S A L An Ethical Choice Motivated to Behave Unethically 209 glOBalization! Autonomy Needs Around the Globe 210 Self-Assessment Library What Are My Course Performance Goals? 214 Point/Counterpoint Fear Is a Powerful Motivator 229 Questions for Review 230 Experiential Exercise Goal-Setting Task 230 Ethical Dilemma The Big Easy? 230 Case Incident 1 It’s Not Fair! 231 Case Incident 2 Bullying Bosses 231 8 Motivation: From Concepts to Applications 239 Read MoreMarketing Mistakes and Successes175322 Words   |  702 Pagesusers, I hope the book will meet your full expectations and be an effective instructional tool. Although case books abound, you and your students may find this somewhat unique and very readable, a book that can help transform dry and rather remote concepts into practical reality, and lead to lively class discussions, and even debates. In the gentle environment of the classroom, students can hone their analytical skills and also their persuasive skills—not selling products but selling their ideas—and