2 Data reliability, the one piece episode 404 sub indonesia more reliable the data is, the more precise the expectation.
Analytical Procedures means evaluation of financial information through analysis of plausible relationships among both financial and non-financial data.The primary purpose of substantive analytical procedures is to obtain assurance, in combination with other audit testing (such as tests of controls and substantive tests of details with respect to financial statement assertions for one or more audit areas.Target Group: Public sector external auditors, principle: ISA 520 deals with the auditor's use of analytical procedures as substantive procedures.The auditor chooses among these procedures based on his objectives for the procedures (ie purpose of the test, desired level of assurance).Trend analysis the analysis of changes in an account over time.You can keep your great finds in clipboards organized around topics.While designing and performing substantive analytical procedures the auditor should consider the amount of difference from the expectation that can be accepted without further investigation (ISA 520).Analytical procedures performed at a high level may mask significant, but offsetting, differences that are more likely to come to the auditors attention when procedures are performed on disaggregated data.However, the information is subject to data reliability considerations mentioned above.Ratio analysis the comparison, across time or to a benchmark, of relationships between financial statement accounts and between an account and non-financial data.Differences indicate an increased likelihood of misstatements; the greater the degree of precision, the greater the likelihood that the difference is a misstatement.
Substantive analytical procedures, analytical procedures are used as substantive procedures when the auditor considers that the use of analytical procedures can be more effective or efficient than tests of details in reducing the risk of material misstatements at the assertion level to an acceptably low.
However, auditor must obtain sufficient appropriate audit evidence that information used to develop expectations is relevant and reliable for such purpose and the procedures applied are appropriate for intended conclusions.
Step 3: Compute difference, the third step is the comparison of the expected value with the recorded amounts and the identification of significant differences, if any.ISA game pc lucu terbaru 520 is related to ISA 315 dealing with the use of analytical procedures as risk assessment procedures and ISA 330 including requirements and guidance regarding the nature, timing and extent of audit procedures in response to assessed risks.Final analytical review (required by ISA 520).Reasonableness testing the analysis of accounts, or changes in accounts between accounting periods, that involves the development of a model to form an expectation based on financial data, non - financial data, or both.Thus, determining which type of substantive analytical procedure to use is a matter of professional judgment.They are ranked from lowest to highest in order of their inherent precision.The objective of the audit procedure will determine whether data for an analytical procedure should be disaggregated and to what degree it should be disaggregated.