The Use of Analytical Procedures as a Substantive Procedure Flashcards
1
Q
What are the three main types of analytical procedures an auditor can use?
A
Variance analysis
Ratio analysis
Proof in total
2
Q
What is meant by variance analysis?
A
The review of current year financial information in comparison to prior period or budgeted information
3
Q
What is meant by ratio analysis?
A
The calculation of ratios and analysis and investigation of significant differences
4
Q
What is meant by proof in total?
A
Use of interrelationships between data (financial and non-financial) to estimate an expected value in financial statements
