Analytical Procedures

Free CPA AUD (Auditing & Attestation) lesson in Performing Further Procedures and Obtaining Evidence. 30 min read, ~4,471 words.

AU-C 520 governs analytical procedures and names three uses: risk assessment (required, planning), substantive (optional), and final overall review (required, near end). A substantive analytical procedure has five steps: develop expectation, set significant difference threshold, compute and compare, investigate differences, document. The expectation must be developed independently and before viewing...

What this lesson covers

• Content
• Example 1
• Example 2
• Example 3
• Example 4
• Example 5
• Example 6
• Example 7
• Example 8
• Common Mistakes
• Check Your Understanding
• Exam Shortcuts

Learning objectives

• III.D2

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