1
Q
Analytical procedure is?
A
Evaluation of financial information
Through comparison and plausible relationship
+ investigation
2
Q
Example of Analytical procedure
A
Comparison
Prior period
Industry
Budget
Comparable parts of same entity (branches k sath)
3
Q
Plausible relationship example
A
With financial (sales to A/C rec)
With non financial (payroll to number of employees)
4
Q
Uses/purpose of Analytical procedure
A
Planning - To obtain understanding
To assess risk
Substantive procedures - to detect misstatement
Overall review - to determine f/s are consistent with understanding
5
Q
Use of analytical procedures as substantive procedures
A
- Determine suitability
