NAA2324. Evidence and Analytical Procedures Risk

Substantive analytical procedures are used in nearly all audit engagements. But unlike substantive tests of details, such as sampling, analytical procedure are often performed without a cohesive model to guide their design, their evaluation, and the extent to which they provide sufficient evidence relative to audit risk. Expanding on the guidance in the new Evidence Standard, this session provides a framework for designing stronger analytical procedures, determining the level of evidence needed from - and provided by - analytical procedures, and using analytical procedures to drive audit quality and audit efficiency. Discussion will also include incorporating more advanced data analysis tools into the audit strategy. The session is focused on practical guidance and examples that you can take back to your firm and use right away in your audits and audit training programs.

Learning Objectives:

• Apply a model for determining the level of evidence needed from - and provided by - analytical procedures
• Use analytical procedures that provide the necessary level of evidence
• Identify an audit strategy that considers the relative evidence provided by analytical procedures and other audit procedures
• Select advanced analytical techniques