NAA2311. Analytical Procedures during Unstable Economic Conditions

Analytical procedures are often based on prior year experience (SALY). In a period of considerable economic disruption (e.g., inflation, supply chain issues, shortages in materials, recession, regulation) it becomes harder to effectively relate current to prior data. This session will explore approaches to analytical procedures as risk assessment and as substantive procedures that can mitigate the effects of economic disruptions.

Learning Objectives:

• Identify the factors that challenge the effectiveness of analytical procedures as a source of evidence
• Analyze the one most important element in the design of analytical procedures
• Differentiate the types of analytical procedures and identify the analytical procedures that can be effective despite these disruptive factors
• Choose effective ways to integrate analytics with other procedures to achieve low audit risk
• Distinguish documentation that supports the risk-reduction you desire