April 2018
Beginner to intermediate
880 pages
28h 54m
English
| Source | Statement on Auditing Standards (SAS) No. 122. |
Source: AU-C 520.04
AU-C Section 520.03 states that:
…the objectives of the auditor are to
- obtain relevant and reliable audit evidence when using substantive analytical procedures and
- design and perform analytical procedures near the end of the audit that assist the auditor when forming an overall conclusion about whether the financial statements are consistent with the auditor's understanding of the entity.
AU-C 315 addresses the use of analytical procedures in risk assessment when planning the audit, and AU-C 330 addresses the nature, timing, and extent of procedures in response to assessed risk. Those procedures may include substantive analytical procedures.
The auditor may, but is not required to, use analytical procedures as a substantive test. When used as a substantive test, the objective of analytical procedures is to accumulate evidence supporting ...