Analytical procedures
Analytical procedures evaluate financial information through analysis of plausible relationships among financial and non-financial data. They may support risk assessment, provide substantive evidence if suitably designed, and assist the overall review near completion. Unexpected differences require investigation and appropriate corroboration.
Worked example
The auditor compares payroll expense with headcount and average pay, then investigates an unexplained increase.
Common mistake
Do not treat every ratio comparison as sufficiently precise substantive evidence; reliability and the expected difference matter.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Direct | September 2026–June 2027 |
| ACCA | AAA (INT) | Direct | September 2026–June 2027 |