What is Final analytical procedures?
In short
Near the end of the audit, the auditor must perform analytical procedures to help form an overall conclusion on whether the financial statements are consistent with the auditor's understanding of the entity.
Key takeaways
- They may reveal a previously unrecognized risk of material misstatement, requiring more work.
- Typical work includes reading the statements and comparing ratios and trends with expectations.
- Analytical procedures are also required in planning, but are optional as substantive tests.
Where it's tested
AUD: Written Representations & Completing the Audit — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Management refuses to sign the written representation letter at the conclusion of the audit. What is the appropriate response?