MCDMAudit Testing Techniques

Analytical Procedures in Auditing

Analytical procedures are evaluations of financial information made by studying plausible relationships among both financial and non-financial data. Rather than testing individual transactions, auditors develop expectations about what numbers should be and compare them to actual results, investigating significant differences. This approach is both required during audit planning and is often more cost-effective than detailed transaction testing.

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Sources

  1. American Institute of Certified Public Accountants (AICPA). (2015). Analytical Procedures. AU-C Section 520. AICPA Professional Standards. link
  2. Arens, A. A., Elder, R. J., & Beasley, M. S. (2014). Auditing and assurance services (15th ed.). Pearson Education. link

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Referenced by

ScholarGateAnalytical Procedures in Auditing (Analytical Procedures Framework for Audit Testing and Risk Assessment). Retrieved 2026-06-04 from https://scholargate.app/en/accounting/analytical-procedures-auditing