Analytical Procedures: Methods and Evaluation 2025-26

Overview

Analytical procedures evaluate financial information through the examination of plausible relationships among both financial and non-financial data. They also encompass such investigation, when necessary, of the identified fluctuations or relationships that are inconsistent with other relevant information or that differ from expected values by a significant amount.

Highlights

•  Review of the appropriate audit and review standards
•  Identifying appropriate analytical procedures in the circumstances
•  Developing expectations
•  Designing and performing analytical procedures
•  Investigating results of the procedures performed
•  Introduction to data analytics

Prerequisites

None.

Objectives

•  Recognize financial statement areas where analytical procedures can be used effectively.
•  Determine the appropriate procedures to perform and which financial ratios and benchmarks to evaluate in consideration of the company's industry statistics and the economic environment.
•  Identify the circumstances when additional investigation of the results of the procedures is required.

Preparation

None.