Basic Analytical Procedures are carried out at the planning stage (C section) to identify trends and areas of risk or possible misstatement. A further assessment should be made at the end of the job after audit adjustments have been made (X section):
- Amounts are compared on a difference and percentage basis, or ratio or gross percentage depending on the analysis
- Analytical review pages pull in figures from the trial balance data - current, prior, difference and percentage columns automatically
- In the case of trading analysis or ratio analysis, specific account lines or subtotals are selected from the trial balance as required
- Requests, comments, key issues, journals, management letter points, review notes, attachments and follow-ups may be added to any item in the analytical review tables:
- Users may create more than one version of some pages - say trading a/c division 1 and trading a/c division 2 - edit pages to rename as required.
- The preliminary analytical review (C section) uses the draft column of the trial balance.
- The final analytical review (X section) uses the final (adjusted) column of the trial balance.
For more complex and predictive analytical procedures we recommend adding Excel and attaching the work paper in the appropriate place.