Analytical Procedures – Component of the Audit Process
Author:
Alexandru CORACIONI
JEL:
C10, M10, M42
DOI:
Keywords:
analytical procedures, management assertions, statistical techniques, regressional analysis
Abstract:
The article presents the analytical procedures, from a theoretical point of view, but also accompanied with rules of thumb applications. Within the empirical applications, there is highlighted the relationship between the analytical procedures and the management assertions, with the aim of the identification of the errors which may affect the financial statements. At the end of the article it is presented a practical example for the application of the regression analysis, for calculation and treatment of results purposes. The analytical procedure instruments may be used by the financial auditors in order to increase the efficiency of their analytical review work, but also by the entities’ management for the verification of the financial statements, or for the purpose of developing useful tools for the forecasting activity.