ASA 520 - Analytical Procedures - April 2006
IntroductionIntroduction
Start here
Get a plain-English read of Introduction
Turn the raw legal text into a practical explanation grounded in ASA 520 - Analytical Procedures - April 2006.
Introduction
4 The purpose of this Auditing Standard is to establish mandatory requirements and provide explanatory guidance on the application of analytical procedures during an audit of a financial report.
5 The auditor shall apply analytical procedures as risk assessment procedures to obtain an understanding of the entity and its environment and in the overall review at the end of the audit.
6 Analytical procedures may also be applied as substantive procedures.
7 “Analytical procedures” means evaluations of financial information made by a study of plausible relationships among both financial and non-financial data. Analytical procedures also encompass the investigation of identified fluctuations and relationships that are inconsistent with other relevant information or deviate significantly from predicted amounts.